Key Takeaways
- • Rosenblatt Securities reiterated a Buy rating on Galaxy Digital (NASDAQ: GLXY) with a $39.00 price target, implying approximately 45.5% upside, based on 26x the company's 2027 adjusted EBITDA estimate.
- • Q1 fiscal 2026 results are expected to materially underperform consensus estimates due to weaker cryptocurrency trading volumes and lower asset prices, though analyst expectations have already been reset downward.
- • Galaxy Digital is transitioning toward an infrastructure-led earnings model anchored by CoreWeave, which generated 168% revenue growth over the trailing twelve months and carries a $66.5 billion market capitalization.
- • CoreWeave secured a $6 billion compute capacity deal with Jane Street and received a $1 billion strategic investment at $109 per share, plus $1 billion in senior notes priced at 9.750%, signaling strong institutional demand for high-performance computing infrastructure.
- • Rosenblatt expects CoreWeave's 144% projected 2026 revenue growth and expansion in Galaxy Digital's power pipeline to drive investor focus toward higher-multiple data center valuations, with earnings reported May 7.
Summary
Rosenblatt Securities maintained its constructive stance on Galaxy Digital Holdings, reiterating a Buy rating with a $39.00 price target on April 23, 2026. The valuation is anchored to 26 times the firm's 2027 adjusted EBITDA estimate and suggests meaningful upside for institutional investors positioned in the name.
The analyst acknowledges near-term headwinds in the company's traditional cryptocurrency trading business. Q1 fiscal 2026 results are anticipated to fall materially below consensus estimates, driven by weaker cryptocurrency trading volumes and lower digital asset prices following recent market pullback. However, Rosenblatt notes that buy-side expectations have already adjusted downward, limiting potential for negative surprise.
The investment thesis pivots to Galaxy Digital's strategic transition toward an infrastructure-led earnings model, with CoreWeave as the primary growth driver. CoreWeave has demonstrated exceptional momentum, posting 168% revenue growth over the trailing twelve months and commanding a $66.5 billion market capitalization. The subsidiary is projected to achieve 144% revenue growth in 2026, positioning it in the higher-multiple data center and high-performance computing segment. Rosenblatt expects this shift to attract fresh investor capital into Galaxy Digital as the broader market reprices the company's earnings composition away from volatile digital asset trading toward recurring infrastructure revenue.
CoreWeave's recent capital activities underscore institutional confidence in the infrastructure thesis. The company executed a $6 billion compute capacity deal with quantitative trading firm Jane Street, who simultaneously invested $1 billion at $109 per share for approximately 9.17 million shares. CoreWeave also priced $1 billion in senior notes due 2031 at 9.750%, guaranteed on a senior unsecured basis by wholly-owned subsidiaries. These transactions signal robust institutional demand for AI and HPC infrastructure capacity at scale.
Beyond near-term earnings volatility, Rosenblatt identifies upside catalysts in Galaxy Digital's power pipeline expansion and an anticipated rebound in the underlying cryptocurrency franchise. With CoreWeave earnings due May 7, 2026, the firm believes the setup is more attractive than current consensus estimates imply, supporting its reiterated Buy rating.
The analyst acknowledges near-term headwinds in the company's traditional cryptocurrency trading business. Q1 fiscal 2026 results are anticipated to fall materially below consensus estimates, driven by weaker cryptocurrency trading volumes and lower digital asset prices following recent market pullback. However, Rosenblatt notes that buy-side expectations have already adjusted downward, limiting potential for negative surprise.
The investment thesis pivots to Galaxy Digital's strategic transition toward an infrastructure-led earnings model, with CoreWeave as the primary growth driver. CoreWeave has demonstrated exceptional momentum, posting 168% revenue growth over the trailing twelve months and commanding a $66.5 billion market capitalization. The subsidiary is projected to achieve 144% revenue growth in 2026, positioning it in the higher-multiple data center and high-performance computing segment. Rosenblatt expects this shift to attract fresh investor capital into Galaxy Digital as the broader market reprices the company's earnings composition away from volatile digital asset trading toward recurring infrastructure revenue.
CoreWeave's recent capital activities underscore institutional confidence in the infrastructure thesis. The company executed a $6 billion compute capacity deal with quantitative trading firm Jane Street, who simultaneously invested $1 billion at $109 per share for approximately 9.17 million shares. CoreWeave also priced $1 billion in senior notes due 2031 at 9.750%, guaranteed on a senior unsecured basis by wholly-owned subsidiaries. These transactions signal robust institutional demand for AI and HPC infrastructure capacity at scale.
Beyond near-term earnings volatility, Rosenblatt identifies upside catalysts in Galaxy Digital's power pipeline expansion and an anticipated rebound in the underlying cryptocurrency franchise. With CoreWeave earnings due May 7, 2026, the firm believes the setup is more attractive than current consensus estimates imply, supporting its reiterated Buy rating.
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