Overview on Galaxy Digital
I wanted to share this recent twitter/X post by Jonathan Goldowsky, Head of Investor Relations at Galaxy Digital. It provides an excellent overview of the firm's critical role in the next century’s digital revolution, specifically regarding the convergence of AI and digital assets. As the economy continues to evolve, Galaxy Digital is positioning itself at the center of both AI infrastructure and blockchain-based financial services. Below is an excerpt from the update:
Jonathan Goldowsky, Head IR Galaxy Digital:
(GLXY) is building the infrastructure that will underpin two of the most powerful forces reshaping the global economy: the proliferation of AI and the digitization of financial services.
AI Infrastructure: The future of digital innovation will depend on the development and expansion of AI data centers. $GLXY owns a 1,500+ acre campus in Texas with 1.63 GW of approved power capacity and the potential to scale to 3.6 GW, making it one of the largest data center campuses in the world. We are also actively evaluating a pipeline of new sites across the U.S. and I expect we will be discussing a multi-campus portfolio within the year.
Digital Infrastructure: As blockchains increasingly become the rails for moving, settling, and storing value, the world's largest financial institutions are recognizing the need for the technology, infrastructure, and expertise to operate in this new environment. Over the past 8+ years, $GLXY has built a full blockchain infrastructure stack spanning wallet infrastructure, private key management, staking, tokenization, and more. We have used this infrastructure internally at scale and now provide it to institutions through custom deployments, white-label solutions, and managed services.
The next decade will be defined by exponential growth in compute and the continued digitization of the economy. $GLXY is positioned at the center of both.
Galaxy Valuation Analysis:
To provide some perspective on $GLXY's valuation, we can look at the math behind its three core business segments: the crypto balance sheet (valued at approximately $3–4 billion), the digital asset investment banking, trading, and asset management businesses, and the rapidly expanding data center business.
Regarding the data center segment, $GLXY currently has 800MW approved and leased to $CRWV, with another 800MW approved and awaiting a tenant announcement. Applying margins similar to the $CRWV deal suggests the potential for $2.4 billion in revenue and $2.16 billion in EBITDA. When applying a 15x P/EBITDA multiple, the data center business alone could be valued at $32 billion as capacity comes online through 2028. Looking further ahead, if $GLXY reaches its potential of 3.5GW by 2031/2032, the revenue and EBITDA figures could climb significantly, potentially supporting a valuation of $70 billion based on similar metrics.
When you conservatively combine the value of the crypto baning and investment business ($5 billion), the data center portfolio ($30 billion), and the crypto balance sheet ($3 billion), the total valuation reaches $38 billion—a substantial premium over the current $12 billion market cap.
Given these long-term projections, we remain confident in our investment in Galaxy, with a long-term price target of approximately $80 -90 per share.
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