Galaxy Digital Plunges 30% in Two Weeks — What Happened?

Galaxy Digital has plunged nearly 30% over the past two weeks amid market concerns over rising debt at its AI infrastructure partner CoreWeave.

Galaxy Digital Stock Under Pressure?

Market intelligence firm StoneX reiterated a Buy rating on Galaxy Digital with a $57 price target, implying 280% upside from current levels.

According to The Block's Monday report, StoneX believes the market undervalues its AI data center business while assigning almost no value to its digital assets operations.

Investor concerns center on CoreWeave, the sole contracted tenant for the first 800 megawatts of total power capacity at Galaxy's Helios AI data center campus in West Texas.

CoreWeave reported $35.6 billion in outstanding debt as of end-June, with rising borrowing costs raising questions about its ability to meet long-term commitments.

StoneX acknowledges the counterparty risk but argues investors should consider Galaxy's expansion opportunities and growing demand for AI computing infrastructure.

Why Is StoneX Bullish?

The firm noted CoreWeave's contracted backlog nearly quadrupled to $104 billion as of June, reflecting sustained AI demand despite the heavy debt load.

Resilient GPU rental prices and compute resource shortages continue to support infrastructure spending.

Galaxy delivered the first 133 megawatts of critical IT load in July, part of CoreWeave's 15-year lease agreement covering 526 megawatts across three phases of its Helios campus.

Galaxy Digital's Current State and Outlook

Galaxy reported a second-quarter net loss of $85 million, despite Helios beginning to contribute revenue for the first time.

During the quarter, the AI data center business generated $20 million in adjusted gross profit and $11 million in adjusted EBITDA.

Galaxy is also expanding beyond Helios, having acquired land for a second Texas AI data center campus in McGregor.

StoneX believes the market is overlooking the potential value of these infrastructure investments, especially as AI compute demand continues to accelerate.