Piper Sandler cuts Galaxy Digital stock price target on valuation By Investing.com

Piper Sandler cut Galaxy Digital’s price target to $36 from $42 but kept an Overweight rating, citing underappreciated catalysts in AI infrastructure, digital assets, and tokenization. The firm highlighted Galaxy’s 800 MW CoreWeave colocation agreement, with energization expected this quarter, as well as additional ERCOT approvals as key near-term drivers. Despite the lower target, the note remains constructive and follows other bullish analyst commentary on the stock.

Analysis

The market is still treating this as a crypto-adjacent balance sheet story, but the more important read-through is that GLXY is becoming an infrastructure option on scarce power. If the CoreWeave build-out reaches energization on schedule, the asset base re-rates from “promised optionality” to cash-flowing contracted capacity, which should compress the valuation gap versus pure-play digital infrastructure names that already trade on power scarcity rather than crypto beta.

Second-order, the biggest beneficiary may be the AI supply chain around CRWV rather than the data-center owner itself: the bottleneck is not GPUs, it is MW delivery. Any additional ERCOT approvals or execution slippage likely matters more than crypto tape over the next 1-2 quarters, because the market will start capitalizing the megawatts as a replacement cost asset instead of a narrative asset. That shift can also force undercovered peers with power-heavy exposure to re-rate, especially if this becomes a template for financing and permitting at scale.

The contrarian point is that the stock may not be as cheap as it looks if investors are already looking through to the terminal infrastructure value and ignoring volatility in institutional trading and token-related revenue. In other words, the downside case is not a collapse in the AI thesis, but a lag between capital spend and monetization that keeps headline numbers noisy for 2-4 quarters. The setup is attractive if you believe execution risk is lower than consensus and that the market is underestimating how quickly contracted power can be valued like recurring infrastructure cash flow rather than speculative crypto exposure.

Key Decisions for Investors

• Go long GLXY on weakness over the next 2-6 weeks ahead of energization milestones; target a move toward the high-30s if the market starts capitalizing contracted MW rather than crypto earnings. Use a tight stop on any evidence of ERCOT delay or counterparties pushing out timing.
• Pair trade: long GLXY / short a higher-beta crypto proxy over the next 1-3 months. The thesis is that GLXY’s upside is now tied more to power and AI infrastructure execution than to spot digital-asset volatility, which should make it relatively more resilient if crypto sentiment rolls over.
• Own CRWV vs. a basket of AI hardware names if additional capacity approvals land; the scarcity value sits with the operator securing long-duration compute, not the supplier of interchangeable components. Risk/reward improves materially if more MW are signed without incremental equity dilution.
• For options accounts, buy 3-6 month GLXY call spreads financed by selling upside in the low- to mid-50s. This expresses re-rating from infrastructure monetization while capping exposure if the market keeps discounting the asset as a noisy hybrid story.
• Avoid chasing after a strong headline print; wait for confirmation of energization and any incremental power approval. The trade works best when the market moves from narrative to measurable progress.