Galaxy Digital’s crypto/AI story not as dangerous because it sounds, analyst says

ATB Capital Markets analyst Martin Toner maintained his “Outperform” ranking and $70.00 value goal on Galaxy Digital (Galaxy Digital Inventory Quote, Chart, Information, Analysts, Financials TSX:GLXY) following the corporate’s fourth-quarter fiscal 2025 outcomes, arguing that the inventory’s sum-of-the-parts valuation is turning into more and more compelling regardless of ongoing volatility in crypto markets.

“Whereas buyers could also be reticent to mix crypto threat with an AI knowledge centre story, we imagine GLXY’s valuation on a SOTP foundation is turning into too enticing to disregard,” Toner mentioned in a Feb. 4 analysis report.

Galaxy reported a This fall/25 internet lack of $482-million, reversing a $505-million internet revenue within the prior quarter and bringing the full-year loss to $241-million, or $(0.61) per share, in contrast with internet revenue of $532-million in fiscal 2024. Diluted EPS was $(1.08) within the quarter versus $1.01 in Q3/25 and This fall/24. Adjusted EBITDA was $(518)-million within the quarter, down sharply from $630-million in Q3/25, although full-year Adjusted EBITDA remained optimistic at $34-million.

Toner mentioned outcomes have been closely impacted by a roughly 24% decline in whole crypto market capitalization throughout the quarter, which drove important unrealized losses within the Treasury & Company phase. Whereas he would have most well-liked to see tighter threat administration in 1 / 4 the place main crypto property fell greater than 20%, he famous that losses within the treasury e-book have been broadly according to declines in Bitcoin, Ethereum and Solana.

Liquidity strengthened meaningfully throughout the quarter, with Galaxy ending This fall with $2.6-billion in money and stablecoins, up 36% sequentially following $1.6-billion in internet proceeds from strategic fairness and exchangeable be aware issuances. That stability is up 168% 12 months over 12 months from $1.0-billion on the finish of 2024. Complete fairness stood at $3.0-billion at year-end, down 4% quarter over quarter however up 38% 12 months over 12 months, reflecting the influence of the capital raises. Complete property elevated 59% 12 months over 12 months to $11.3-billion, regardless of internet digital property and investments declining 22% sequentially to $1.7-billion as a consequence of market depreciation.

Regardless of the quarter’s losses, Galaxy delivered file full-year adjusted gross revenue of $505-million from its digital property enterprise, up 67% 12 months over 12 months. Fourth-quarter adjusted gross revenue of $51-million declined sharply from $318-million in Q3/25, when Digital Asset Treasury Methods generated outsized advisory charges. Treasury & Company posted an adjusted gross lack of $454-million in This fall, in contrast with a $408-million revenue within the prior quarter. The info centre phase continued to scale, with adjusted gross revenue rising to $4.6-million from $2.7-million in Q3, and full-year adjusted gross revenue reaching $7.2-million.

Toner mentioned there may be continued progress at Galaxy’s Helios high-performance computing campus in Texas, which he views as a key driver of long-term worth. As of January 2026, Galaxy has secured ERCOT approval for a further 830 megawatts of energy, lifting whole permitted capability to greater than 1.6 gigawatts, with long-term enlargement potential of as much as 3.4 gigawatts. The location is beneath a 15-year lease with CoreWeave, which has dedicated to the total preliminary 800 megawatts of capability, a partnership Toner mentioned is predicted to generate greater than $1-billion in common annual income. Preliminary energy supply is scheduled for the primary quarter of 2026, with a second tranche anticipated within the second half of the 12 months.

Toner mentioned the mix of bettering liquidity, file digital asset profitability on a full-year foundation, and rising visibility at Helios helps his constructive outlook, whilst near-term outcomes stay delicate to crypto market swings.

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