Key Takeaways
- • Goldman Sachs raised its Galaxy Digital price target to $24 from $21, maintaining a Neutral rating, though the target remains below the stock's current trading price of approximately $26–$24.97.
- • Galaxy Digital delivered stronger-than-expected Q1 2026 results driven by lower losses in treasury and corporate segments, but core operating divisions—digital assets and data centers—showed weaker performance relative to analyst expectations.
- • The company reported a GAAP net loss of $216 million (–$0.49 per share) in Q1 2026, impacted by unrealized losses on digital asset holdings amid cryptocurrency market volatility.
- • Galaxy Digital delivered its first data hall to CRWV on schedule and budget, with Phase II construction underway and additional data halls expected in H1 2027, signaling progress on infrastructure expansion despite near-term headwinds.
- • CEO Mike Novogratz stated the business has "decoupled" from Bitcoin for the first time, noting that trading volumes remained flat during Q1 even as crypto prices declined 20% industry-wide.
Summary
Goldman Sachs adjusted its outlook on Galaxy Digital Holdings (GLXY) on April 29, 2026, raising its price target to $24 per share from a prior $21 target while maintaining a Neutral rating. Despite the upward revision, Goldman's new target sits approximately 8–9% below Galaxy Digital's closing price of $26 on the day of the announcement, signaling continued downside risk in the analyst's view. The stock had gained in early morning trading following the price target hike, reflecting initial positive sentiment around the company's first-quarter earnings beat.
Goldman Sachs attributed Galaxy Digital's stronger-than-expected Q1 performance to improved results in non-operating segments, particularly treasury and corporate activities, where losses contracted. However, this strength was partially offset by softer performance in the company's higher-multiple operating businesses: digital assets and data centers, which typically command premium valuations. The divergence between non-core and core business performance suggests uneven operational momentum heading into the second half of 2026.
Galaxy Digital reported a GAAP net loss of $216 million, or $0.49 per share, in the first quarter of 2026, driven primarily by unrealized losses on its digital asset holdings as the cryptocurrency market experienced volatility. Despite the loss, revenue grew 40% to $61.4 billion on a reported basis. The company repurchased 3.2 million shares during the quarter, offsetting dilution from 2025 stock compensation issuance—a capital allocation decision that signals management confidence despite near-term earnings pressure.
On the infrastructure front, Galaxy Digital delivered its first data hall to CRWV and remains on schedule and budget for the remainder of Phase I deliveries. Construction of Phase II has commenced, with additional data halls expected to come online in the first half of 2027. This progress provides visibility into future revenue growth despite the challenging current market environment. CEO Mike Novogratz underscored a potential strategic inflection, stating during the earnings call that Galaxy Digital's business has "decoupled" from Bitcoin for the first time, noting that Galaxy's trading volumes remained flat in Q1 even as cryptocurrency prices declined 20% industry-wide and broader trading activity fell. This claim, if validated by future results, could suggest the company is diversifying its revenue streams beyond direct cryptocurrency price exposure.
Goldman Sachs attributed Galaxy Digital's stronger-than-expected Q1 performance to improved results in non-operating segments, particularly treasury and corporate activities, where losses contracted. However, this strength was partially offset by softer performance in the company's higher-multiple operating businesses: digital assets and data centers, which typically command premium valuations. The divergence between non-core and core business performance suggests uneven operational momentum heading into the second half of 2026.
Galaxy Digital reported a GAAP net loss of $216 million, or $0.49 per share, in the first quarter of 2026, driven primarily by unrealized losses on its digital asset holdings as the cryptocurrency market experienced volatility. Despite the loss, revenue grew 40% to $61.4 billion on a reported basis. The company repurchased 3.2 million shares during the quarter, offsetting dilution from 2025 stock compensation issuance—a capital allocation decision that signals management confidence despite near-term earnings pressure.
On the infrastructure front, Galaxy Digital delivered its first data hall to CRWV and remains on schedule and budget for the remainder of Phase I deliveries. Construction of Phase II has commenced, with additional data halls expected to come online in the first half of 2027. This progress provides visibility into future revenue growth despite the challenging current market environment. CEO Mike Novogratz underscored a potential strategic inflection, stating during the earnings call that Galaxy Digital's business has "decoupled" from Bitcoin for the first time, noting that Galaxy's trading volumes remained flat in Q1 even as cryptocurrency prices declined 20% industry-wide and broader trading activity fell. This claim, if validated by future results, could suggest the company is diversifying its revenue streams beyond direct cryptocurrency price exposure.
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