Key Takeaways
- • Chardan initiated coverage of Galaxy Digital Holdings (NASDAQ: GLXY) with a Buy rating and $35.00 price target, implying 34% upside from the April 27, 2026 price of $26.16.
- • Galaxy Digital delivered 98.9% returns over the past 12 months but has retraced 21% in the last six months, reflecting high volatility (beta of 3.64) characteristic of digital asset exposure.
- • The company generated $61.4 million in revenue with 40% year-over-year growth but remains unprofitable (EPS of -$0.61 LTM), with a data center infrastructure business offering 830 megawatts of available capacity and a 3.4-gigawatt pipeline.
- • Chardan's sum-of-the-parts valuation methodology values three segments: Global Markets, Asset Management & Infrastructure Solutions, and Data Center Infrastructure, using discounted cash flow models for contracted and approved capacity plus fair value marking of net digital assets.
- • The analyst views the data center business as providing stable cash flow generation to offset volatility from Galaxy Digital's core digital assets operations.
Summary
Chardan Capital Markets has initiated coverage of Galaxy Digital Holdings with a Buy rating and a $35.00 price target as of April 27, 2026, representing approximately 34% upside potential from the stock's prevailing price of $26.16. The initiation reflects Chardan's thesis that Galaxy Digital's diversified exposure to the digital assets ecosystem—through financial services, thought leadership, and emerging infrastructure—justifies a premium valuation amid a broader digital asset tailwind.
Galaxy Digital's operational performance reflects both growth dynamism and ongoing profitability challenges. The company posted $61.4 million in revenue with robust 40% year-over-year growth over the last twelve months, driven primarily by its expanding AI and high-performance computing data center infrastructure business. However, the company remains unprofitable, posting negative earnings per share of -$0.61 LTM. The stock has demonstrated substantial volatility, delivering a 98.9% return over the past year while pulling back 21% in the most recent six-month period—a pattern consistent with its high beta of 3.64, which reflects outsized price movements relative to broader market indices.
Chardan's valuation framework employs a sum-of-the-parts methodology spanning three operational segments: Global Markets, Asset Management & Infrastructure Solutions, and Data Center Infrastructure. The firm applied discounted cash flow models to Galaxy Digital's contracted and approved data center capacity, while marking net digital assets and investment accounts to fair value. The analyst applied a discounted multiple relative to industry peers across trading, investment banking, and asset management verticals, reflecting Galaxy Digital's emerging stage relative to established players. The company's data center portfolio comprises 830 megawatts of capacity available for contract and a development pipeline extending to 3.4 gigawatts, positioning it for substantial revenue expansion as demand for AI infrastructure intensifies.
Chardan identifies the data center business as a critical strategic asset capable of generating stable, predictable cash flows to counterbalance the inherent volatility of digital asset trading and investment operations. This diversification thesis underpins the Buy rating and reflects the firm's conviction that Galaxy Digital can transition from a pure-play digital assets firm toward a more balanced infrastructure and financial services platform. The coverage initiation occurs as Galaxy Digital receives elevated analyst attention, with the broader Street maintaining a constructive stance on the stock's medium-term trajectory.
Galaxy Digital's operational performance reflects both growth dynamism and ongoing profitability challenges. The company posted $61.4 million in revenue with robust 40% year-over-year growth over the last twelve months, driven primarily by its expanding AI and high-performance computing data center infrastructure business. However, the company remains unprofitable, posting negative earnings per share of -$0.61 LTM. The stock has demonstrated substantial volatility, delivering a 98.9% return over the past year while pulling back 21% in the most recent six-month period—a pattern consistent with its high beta of 3.64, which reflects outsized price movements relative to broader market indices.
Chardan's valuation framework employs a sum-of-the-parts methodology spanning three operational segments: Global Markets, Asset Management & Infrastructure Solutions, and Data Center Infrastructure. The firm applied discounted cash flow models to Galaxy Digital's contracted and approved data center capacity, while marking net digital assets and investment accounts to fair value. The analyst applied a discounted multiple relative to industry peers across trading, investment banking, and asset management verticals, reflecting Galaxy Digital's emerging stage relative to established players. The company's data center portfolio comprises 830 megawatts of capacity available for contract and a development pipeline extending to 3.4 gigawatts, positioning it for substantial revenue expansion as demand for AI infrastructure intensifies.
Chardan identifies the data center business as a critical strategic asset capable of generating stable, predictable cash flows to counterbalance the inherent volatility of digital asset trading and investment operations. This diversification thesis underpins the Buy rating and reflects the firm's conviction that Galaxy Digital can transition from a pure-play digital assets firm toward a more balanced infrastructure and financial services platform. The coverage initiation occurs as Galaxy Digital receives elevated analyst attention, with the broader Street maintaining a constructive stance on the stock's medium-term trajectory.
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