On May 16, almost exactly one month ago, Galaxy Digital's shares began trading on the US technology exchange Nasdaq. The stock with the ticker GLXY opened at a price of USD 23.50. The company had previously been listed on the Toronto Stock Exchange since 2020. CEO Mike Novogratz fought a four-year battle with the US regulatory authorities to be able to switch to the Nasdaq. There is a good reason why the billionaire was so persistent: in his opinion, Galaxy's visibility in Canada is one-thirtieth of what is possible in the United States. Given its operational focus, the group is likely to attract a lot of attention in any case. Galaxy Digital is focusing on two high-growth areas: Cryptocurrencies and Artificial Intelligence (AI).
The move to the Nasdaq comes at a time when years of regulatory caution in the USA are gradually disappearing. Unlike under Joe Biden, the new administration under President Donald Trump is very sympathetic to the crypro industry. The head of the SEC has even been replaced. Trump promoted Paul Atkins to the important office, who has been pursuing a pro-crypto policy ever since. Galaxy now appeals to a much broader range of investors on the technology exchange, as respected crypto players such as the software company Strategy, the crypto exchange Coinbase and the miner MARA Holdings are already traded there. "We are confident that this listing will increase the value for the company and our shareholders and enable us to attract a broader investor base," says Galaxy CEO Novogratz.
Galaxy shareholders definitely need good nerves. The recent share price performance has been more like a rollercoaster ride. From USD 24 in mid-January, it fell to just under USD 8 in less than three months, which corresponds to a four-way split. Just six weeks later, the share had already reached a new high of just under USD 27 before consolidating in the USD 20 range. The trend shows that Galaxy shares correlate closely with the performance of cryptos, which also fluctuated sharply up and down during the period mentioned.
A volatile development is also evident at operating level. Total income increased by 88% to USD 1.15 billion in the 2024 financial year. The company generated a net profit of USD 366.5 million, which in turn corresponds to an increase of almost a quarter. However, the result then turned negative in the first quarter of 2025. The bottom line was a loss of USD 295 million as at March 31, compared to a profit of USD 118 million in the previous year. The loss is mainly due to the fall in the price of digital assets and a one-off impairment loss of USD 57 million in connection with the closure of mining operations at the Helios data center campus.
While mining at Helios is history, Galaxy will now host CoreWeave's AI and high-performance computing (HPC) infrastructure on the data center campus. A 15-year lease agreement was concluded with the AI cloud computing startup in the final quarter of 2024. From this, Galaxy initially planned to generate total revenue of around USD 4.5 billion. After the end of the first quarter of 2025, CoreWeave has now exercised its first option to access additional critical IT load for its AI and HPC activities from Galaxy. This will deliver an additional 260 megawatts (MW) to CoreWeave, scheduled to begin in 2027. Ultimately, this expansion will bring CoreWeave's total committed capacity for AI and HPC operations at Helios to around 393 MW.
Until the data center business concluded with CoreWeave begins to run from the second half of 2026, the company remains heavily dependent on the development of digital assets. Galaxy's balance sheet is dominated by Bitcoin, Ether & Co. through a diversified allocation across spot positions, ETFs, private equity holdings and other long-term investments. As at March 31, the exposure to Bitcoin, the largest and oldest cyber currency, amounted to USD 517 million, Ether was on the books at USD 150 million and Solana at USD 19.6 million. A further USD 221 million is attributable to other crypto assets such as the company's own Galaxy Digital Crypto Fund.
The fact that the forward-looking business model based on the two megatrends of AI and crypto is ultimately well received by capital market experts is reflected in the analyst ratings. The 9 studies listed by CNN Business all result in a buy recommendation. The average price target is USD 27.90, which represents a difference of 48% to the current price. The highest target is USD 31.27, a gap of two thirds, the lowest is USD 24.20, which still corresponds to a potential of 28.5%.
In order to achieve a comparable return with Galaxy shares, the share price does not necessarily have to rise. Leonteq has launched two soft-callable barrier reverse convertibles (BRC) on the technology company. The CHF variant offers the prospect of a maximum return of 21.80% p.a., while in USD 26.60% p.a. is even possible within the maximum term of one year. The products offer a high level of protection. Not only is the barrier for both variations a comfortable 50% away from the starting price, it is also only active once. Leonteq has chosen the European variant for the BRCs, which allows the underlying to move freely during the term. The barrier is only activated at the final fixing. Due to the callable function, the term can be shortened to a maximum of half a year.
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