Company Galaxy Digital: Buy Rating as AI Infrastructure Pivot Unlocks Upside — $40 Price Target

Company Galaxy Digital is executing an aggressive pivot from being primarily a digital-asset business into a diversified financial and industrial-scale AI infrastructure platform. The firm's integrated model — combining global markets, asset management, and the industrial Helios data center — creates a multi-layered moat that can drive durable revenue growth and operational leverage over the next decade. Given recent operational beats and a sizable valuation gap to its peers, we issue a Buy rating with a $40 price target.

Integrated, multi-engine strategy: Company Galaxy Digital is no longer just tethered to the price swings of Bitcoin. Its three-pronged model links institutional-grade trading and lending, an asset-management arm now overseeing about $9 billion in assets, and a capital-intensive infrastructure platform centered on the Helios site. This vertical integration allows the company to capture value across the full stack — from custody and liquidity to large-scale AI compute — creating cross-subsidies that enhance the sustainability of R&D and buildout.

Helios: a durable physical moat: The Helios campus is an industrial-scale asset with the land, power rights, and secured renewable energy that can deliver decades of horizontal expansion for GPU racks and AI workloads. Company Galaxy Digital's

Valuation disconnect and EPS momentum: The market currently assigns Company Galaxy Digital a forward Price/Sales multiple that looks deeply discounted relative to its peers, while recent quarters have shown substantial EPS beats. Using a conservative forward P/E multiple and the consensus EPS trajectory translates to a potential share value near $40, implying meaningful upside from today’s levels if the infrastructure thesis materializes.

Strategic partnerships and tokenization proof points: The collaboration with Company State Street on tokenized private equity (SWEEP) highlights the firm's ability to serve as an on-chain infrastructure provider to large, traditional asset managers. These partnerships can convert volatile trading flows into more steady, recurring fee-based revenue over time.

Comparative advantages vs. peers: Unlike legacy asset managers such as Company Affiliated Managers Group and Company StepStone Group, Company Galaxy Digital is building a technology-first, high-growth platform. Its forward revenue growth assumptions materially outpace sector medians, while a leaner workforce supports superior operating efficiency versus firms like Company SEI Investments.

Key risks: The pivot to AI infrastructure introduces execution and capital risks. Large-scale construction delays, cost overruns, or the need for incremental capital (including exchangeable instruments that could dilute shareholders) are real concerns. Regulatory shifts that reverse pro-crypto sentiment or extreme local power-price volatility in the ERCOT grid could also materially impact margins.

Conclusion: We view the market as underappreciating the transition story at Company Galaxy Digital. The Helios asset, paired with institutional distribution and burgeoning tokenization capabilities, could justify materially higher multiples as AI infrastructure economics come into focus. While execution and regulatory risks are non-trivial, the combination of EPS momentum, a large valuation gap, and a credible multi-engine strategy supports a Buy rating and a $40 price target.