Piper Sandler raises Galaxy Digital stock price target to $42 on mining expansion

Piper Sandler raised its price target for Galaxy Digital (GLXY) to $42 from $36, maintaining an Overweight rating, citing increased confidence in the company's execution on its Helios build-out and adjusted valuation metrics. This upgrade follows GLXY's securing of a $1.4 billion financing facility for its AI/HPC-focused Helios datacenter expansion, a 1 GW power capacity addition, and strategic moves into equity tokenization and Bitcoin mining. These developments underpin the stock's 188% surge over the last six months, with analysts noting the valuation still represents a steep discount to peers.

Analysis

Piper Sandler has increased its price target on Galaxy Digital (GLXY) to $42.00 from $36.00, maintaining an Overweight rating, reflecting increased confidence in the company's strategic execution. This confidence is supported by tangible progress at its Helios facility, including the addition of 1 GW of potential power capacity and the successful procurement of a $1.4 billion project financing facility to expand its datacenter for artificial intelligence and high-performance computing operations. The revised valuation is based on an increased terminal multiple of 15 times EV/EBITDA in the firm's DCF model, up from 13 times, yet this is noted to be at a steep discount to data center peers like Digital Realty Trust and Equinix. These fundamental developments, which also include a partnership for a 48 MW bitcoin mining expansion and a pioneering move to tokenize equity shares, provide a strong basis for the stock's 188% surge over the past six months and suggest a strategic pivot towards a diversified digital asset and infrastructure model.

Key Decisions for Investors

• The analyst upgrade and tangible progress on the Helios project reinforce the bullish case, warranting a review of GLXY's position in portfolios with exposure to AI infrastructure and digital assets.
• Evaluate the valuation gap between GLXY and its data center peers; the current discount could narrow significantly upon successful execution of the Helios expansion, presenting a potential catalyst for the stock.
• Closely monitor key project milestones and capital expenditure for the Helios build-out, as any execution delays or cost overruns present the primary risk to the updated investment thesis.
• Re-assess the company's risk profile, as its strategic expansion into AI data centers, tokenization, and custody services diversifies its revenue away from pure cryptocurrency market volatility.