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The GLXY stock price has been in a strong bull run over the past few years, rising from a low of $2.43 in 2023 to its current level of $43. This surge has transformed Galaxy Digital into one of the largest companies in the cryptocurrency industry, with a market capitalization of over $16 billion.
AI and Crypto Tailwinds Remain
Galaxy Digital is a leading player in the retail and institutional cryptocurrency industries, offering funds and trading solutions. It has also evolved into a major provider of data center solutions as the artificial intelligence (AI) industry grows.
Galaxy operates in three key segments. Its Global Markets division involves over-the-counter (OTC) trading solutions, while the asset management business involves ETFs and other alternative investments. Its data center segment involves offering services to companies building AI models.
Galaxy’s business has performed well in the past few months, as the crypto and AI industries have experienced significant growth. The most recent results showed that its total assets increased to over $9 billion in the second quarter, up from $6.33 billion in the first quarter. Its assets include $748 million in Bitcoin, $196 million in Ethereum, $718 million in venture investments, and other cryptocurrencies.
Galaxy’s revenue rose to $9 million in Q2 from $8.8 million in the same period last year. Its six-month revenue rose to $21 million from $18.8 million in the same period last year. The company also generated a tiny profit as it emerged from a big loss last year.
Wall Street analysts are optimistic that the company’s business will continue to perform well in the coming weeks as demand for cryptocurrencies increases. The Bitcoin price recently reached a record high, while Ethereum and XRP are all hovering near their all-time highs.
Analysts are optimistic that cryptocurrencies will continue doing well in the coming months. For example, Eric Trump believes that Bitcoin price will jump to $1 million in the coming weeks.
Similarly, other Wall Street analysts and investors like Paul Tudor Jones, Michael Saylor, Tom Lee, and Cathie Wood expects that the coin will continue doing well, and possibly hit over $500,000 in the long term.
The other major crypto tailwind is that the company recently launched GalaxyOne, which brought institutional-grade solutions to individual investors. The solution launched with the premium yield, which offers an 8% return and Cash, which has a 4% APY. It also offers GalaxyOne Crypto and GalaxyOne Brokerage.
Soaring Data Center Demand
Meanwhile, its data center business is performing well this year, a trend that may continue as analysts predict increased demand for AI data centers over the next decade.
In a recent report, Bain noted that companies will need to invest over $2 trillion in data centers over the next decade to accommodate the rising demand for AI. Other analysts from companies like Citigroup and McKinsey have also published similar results.
Top companies have made major announcements in the past few weeks. The most important one for Galaxy Digital came from Meta Platforms, which reached a $14 billion deal with CoreWeave. Similarly, Nvidia has announced a $100 billion deal with OpenAI, while OpenAI announced a major deal with AMD.
Galaxy Digital benefits from these announcements, as it operates a major plant in Texas with a capacity of 800 MW. CoreWeave has committed to 526 MW of capacity from the plant in a 15-year deal, a figure that will increase after the recent Meta Platforms deal.
GLXY Stock Price Technical Analysis
The weekly chart shows that the GLXY stock price bottomed at $2.3 in 2023 and is in a strong uptrend. It has moved above the 50-week and 200-week Exponential Moving Averages (EMA) and formed a golden cross.
The stock has formed a cup-and-handle pattern, with its upper side at $35 and its lower side at $2.43. This means that it has a depth of about 92%. Measuring the same distance from the cup’s upper side meaning that it may jump to $65 in the longer term.
