ATB Capital Markets analyst Martin Toner raised his value goal on Galaxy Digital Holdings (Galaxy Digital Inventory Quote, Chart, Information, Analysts, Financials TSX:GLXY) to C$60.00 from C$50.00 and maintained an “Outperform” score in an Oct. 19 report, saying the corporate is poised to ship report third-quarter outcomes pushed by “windfall” buying and selling and advisory income, in addition to progress throughout its digital asset and high-performance computing companies.
“Galaxy is getting into a pivotal section,” Toner stated. “We’re elevating our estimates to account for report buying and selling exercise, new asset administration mandates, and a busy advisory quarter. Whereas our forecasts stay conservative, we see potential for windfall income from a number of sources, together with the $9-billion ‘whale’ Bitcoin commerce disclosed in July.”
Toronto-based Galaxy Digital is a diversified monetary companies and funding agency centered on the digital asset, blockchain, and high-performance computing sectors. Based by Mike Novogratz in 2018, the corporate operates by means of buying and selling, funding banking, asset administration, and mining infrastructure divisions, with extra publicity to enterprise investments and rising blockchain platforms.
Toner stated Q3 outcomes, scheduled for launch on Oct. 21, ought to replicate a big rebound in digital asset revenues after a subdued Q2. He expects whole income of $21.2-billion, gross revenue of $435-million, and web revenue of $277-million, supported by surging buying and selling volumes, a pointy rebound in crypto costs, and report advisory exercise.
“Spot crypto buying and selling rose about 25% sequentially, whereas Bitcoin gained 5%, Ethereum 65%, and Solana 42% throughout the quarter,” Toner famous. “Based mostly on Galaxy’s $1.3-billion web digital asset place on the finish of Q2, we estimate Treasury-related gross revenue of $251-million.”
He additionally highlighted a number of strategic developments throughout the quarter. CoreWeave exercised its ultimate choice at Galaxy’s Helios website, with Galaxy co-leading a US$1.65-billion financing. The corporate additionally tokenized its Nasdaq-listed shares by means of a partnership with Superstate, turning into the primary to take action, and launched GalaxyOne, a fintech platform for U.S.-based high-net-worth traders providing built-in crypto, equities, and yield merchandise. Moreover, Galaxy introduced a US$460-million strategic funding from a serious world asset supervisor, whose id stays undisclosed.
Between strategic investments, tokenization of its fairness, quite a few financings, and the launch of GalaxyOne, administration can have a lot to debate on the earnings name, Toner stated. He expects report outcomes throughout a number of metrics.
He additionally pointed to Galaxy’s increasing high-performance computing footprint, with 3.5 gigawatts of potential energy capability at Helios, together with a brand new 1GW interconnect request and 133MW Part I buildout scheduled for energization within the first half of 2026.
“Our $60 goal is predicated on a sum-of-the-parts valuation utilizing 18× 2026 adjusted gross revenue (up from 15× beforehand),” he stated. “We additionally add about $7.00 per share in choice worth for Galaxy’s 2.7GW of uncontracted energy capability. On the present valuation, roughly 6.4× next-12-month EV/Adjusted EBITDA versus a five-year common of 8.9×, we view the inventory as undervalued given its scale, strategic optionality, and robust place inside institutional digital asset markets.”
Novogratz lately commented on social media that Galaxy is “busier than at any level since 2018 … and we consider Q3 will show that assertion right.”
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