August 4, 2025
5 min read
Katherine Ross
Galaxy’s broad crypto strategy spans balance sheet, digital assets, and trading, positioning it as a strong buy ahead of earnings.
Galaxy’s Broad Crypto Strategy Covers Key ‘Buckets’: Flood Capital
With Galaxy set to report earnings tomorrow, Rittenhouse Research rated it a strong buy in a recent note. Is Galaxy really a strong buy? That was the deep dive in today’s Empire episode with Duncan from Flood Capital and Matt from Rittenhouse Research, which rated Galaxy a strong buy in a recent research note. Both Duncan and Matt made their bullish cases for Galaxy in Empire today, highlighting it as one of the more successful crypto firms. Before we dive in, it’s important to note that Empire co-host Jason Yanowitz and both Matt and Duncan disclosed they hold GLXY. Duncan from Flood Capital breaks down Galaxy into three main buckets:- Balance Sheet: Galaxy’s market cap is just under $28 per share, roughly a $10 billion valuation. The crypto balance sheet includes $1.3 billion in Bitcoin as of March 31st.
- Digital Assets Business: Matt from Rittenhouse emphasized the strategic value here, noting Galaxy is the only full platform offering a comprehensive set of services tailored specifically for institutions and companies within the crypto ecosystem.
- Trading Business: Galaxy’s trading operations are significant compared to other crypto firms. This includes derivatives, lending, trading, and structured products. As of the last quarter, Galaxy had nearly a $900 million loan book, making it one of the largest centralized finance lenders in crypto. Duncan compared Galaxy to Goldman Sachs in the traditional finance world, highlighting Galaxy’s role as the "adult in the room". He cited Galaxy’s involvement in major contracts like the FTX estate deal, where Galaxy managed custody of assets. Galaxy also holds over $3 billion in staked assets and is the fourth-largest validator on Solana. Rittenhouse Research also sees Galaxy as a prime way to play the pivot from Bitcoin mining to AI data center operations. Their note states, “Galaxy is the most attractive way to play the ‘Bitcoin miner pivoting to AI data center operator’ investment thesis,” emphasizing that Bitcoin mining was never a material part of Galaxy’s operating business. The stock is trading around $27 prior to market open, up 181% over the past year, with potential for further gains. Duncan shared his long-term outlook:
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"I think it could be worth like a hundred dollars a share in the next few years. It’s definitely a long-term investment. As they execute on the data center business, if they continue to execute there, then I’m really happy to hold this for a very long time."When asked about the stock’s fair value today, Duncan estimated roughly $55 per share based on current fundamentals. Matt added that there could be additional upside from potential acquisitions or joint ventures that add long-term value. Galaxy is set to report earnings tomorrow, which will be a key moment to see if these bullish cases hold.
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Source: Originally published at Blockworks on August 4, 2025.