The Galaxy Digital story

What drives the business

• Galaxy is converting its bitcoin mining infrastructure experience into AI data centers, anchored by a 15-year CoreWeave lease at Helios and expansion leases expected to bring contracted critical IT capacity to 526 MW by 2028.
• Its Digital Assets segment combines Global Markets trading, lending and advisory services with Asset Management & Infrastructure Solutions, serving more than 1,600 trading counterparties and holding approximately $12.3 billion in assets across its platform as of December 31, 2025.
• Digital Assets earns transaction fees, gains or losses on principal positions, lending income, management and performance fees, and infrastructure revenue, with $66 million in adjusted gross profit in the quarter to June 2026.
• A multi-year agreement with BNY supports staking and digital asset platform development, linking Galaxy's infrastructure services to a custodian overseeing more than $60 trillion in assets.
• After the quarter to June 2026, the Merlin, Caspian and Selene sites expanded Galaxy's Texas development footprint, bringing its potential power pipeline to over 5.7 GW.

What the price assumes

At $21.10 per share and a $4.1 billion market value, the reverse DCF cannot measure an implied growth rate because free cash flow and operating earnings are both negative, leaving the price dependent on future profits.

Galaxy's 0.1x price to sales sits alongside revenue growth of 3.6% and an operating margin of -0.5% over the last twelve months, so the sales multiple does not establish a cash earnings base.

TenQ's free cash flow yield check requires above 3%, compared with Galaxy's -46.1%, while its Growth and Quality categories each passed 0 of 6 checks.

What could change the story

• Digital asset price declines remain a source of earnings volatility, with combined assets under management and assets under stake falling 12% sequentially to $7.1 billion in the quarter to June 2026, primarily because of market depreciation.
• Negative free cash flow leaves expansion dependent on financing, and the July 2026 secured notes carry a 9.875% annual interest rate while Galaxy fails TenQ's earnings coverage check.
• CoreWeave anchors the contracted Helios capacity, making tenant performance and construction timing important, while the expected project-level adjusted EBITDA margin is not a companywide profit or cash flow margin.
• The over 5.7 GW pipeline is potential capacity rather than operating capacity, with Caspian and Selene subject to ERCOT's interconnection process and 830 MW of approved Helios capacity not yet under lease as of the August 2026 release.

What to watch next

• Galaxy expects Helios Phase I to generate approximately $80 million in quarterly leasing revenue and over 90% project-level adjusted EBITDA margin beginning in the third quarter of 2026.
• For the 260 MW Phase II expansion, the next construction updates can be measured against management's expected start of data hall deliveries in the second quarter of 2027.
• Subsequent releases will show whether lease income improves consolidated free cash flow and interest coverage, alongside changes in digital asset trading activity, managed assets and staking assets.

Sources

• Galaxy Digital's earnings release, filed with the SEC
• Its latest 10-Q or 10-K, for the risk factors
• The GLXY stock report, for every figure and check