BTIG reiterates Galaxy Digital stock rating on AI infrastructure growth By Investing.com

BTIG reiterated a Buy on Galaxy Digital with a $50 price target, implying significant upside from the current $18.87 share price, and valued the existing CoreWeave colocation contract at about $14 per share. The company also secured ERCOT approval for an additional 830 megawatts of gross capacity (550 megawatts IT capacity), with BTIG expecting new colocation contracts later this year and power availability in 2028. Recent catalysts include the launch of GalaxyOne, Solana staking for eligible U.S. clients, and the initial closing of a tokenized CLO with roughly $75 million financed so far.

Analysis

The market is still treating GLXY like a high-beta crypto proxy, but the more durable setup is becoming a utility-like land bank on scarce power. The hidden option value is not the current trading business; it is the ability to arbitrage signed power capacity into multiple monetization paths over the next 12-36 months, which should compress the gap between implied asset value and the stock price if execution remains clean.

The second-order winner from the Helios expansion is likely CRWV and any other AI inference/training tenant with urgent megawatt demand. In a world where GPU supply is improving faster than power interconnects, the bottleneck shifts to delivered capacity and permitting, which means owners of permitted load become price-setters. That also pressures smaller colocation developers without transmission access, because they cannot replicate this asset base on the same timeline.

The near-term catalyst is earnings within days, but the real risk is not a bad quarter; it is that investors use near-term crypto volatility to underwrite the entire AI infrastructure story at a discount rate that is too punitive. If management can show a credible multi-tenant fill plan for the incremental capacity and evidence that GalaxyOne is increasing customer stickiness, the stock can re-rate sharply. If they don’t, the market will likely continue to mark the shares as a levered crypto beta name rather than an infrastructure compounder.

The contrarian point is that the market may be underestimating how much of the value is deferred into 2028 and beyond. That can look like dead money in the next few months, but for a patient capital base the asymmetry is attractive: downside is capped by the existing contract and current infrastructure footprint, while upside expands materially if the company proves it can fill the new capacity at attractive long-duration economics.

Key Decisions for Investors

• Long GLXY into earnings with a 4-8 week horizon; use a defined-risk structure such as buying shares and hedging with a near-dated put spread, or outright long Jan-2026 calls if liquidity allows. Risk/reward is favorable if management confirms incremental capacity monetization, but expect elevated post-print volatility.
• Pair trade: long GLXY / short a basket of smaller AI infrastructure developers without secured power or transmission. The thesis is that scarce interconnect and permitting, not GPU supply, will determine winners over the next 12-24 months.
• Add CRWV on weakness as the most direct beneficiary of incremental GLXY capacity and adjacent colocation demand. Time horizon: 3-12 months; thesis breaks if AI capex pauses or GLXY fails to execute on tenant expansion.
• Avoid shorting GLXY outright despite crypto sensitivity; instead, fade rallies only via call overwrites or partial profit-taking. The embedded infrastructure option makes left-tail risk asymmetric to the upside if power capacity gets re-rated as strategic scarcity.
• If GLXY sells off 10%+ on an earnings miss driven by crypto trading noise rather than infrastructure commentary, buy the dip for a 6-12 month hold. The market is likely over-discounting transitory transaction volatility relative to the monetization curve of the power assets.