Summary Galaxy runs a dual strategy with its digital-asset platform and Helios AI/HPC data-center campus with CoreWeave. Management positions tokenization as a TradFi-to-crypto bridge. Its roadmap includes tokenized MMF and tokenized Galaxy equity. Over time, Galaxy will also make a retail push. GalaxyOne offers FDIC-insured cash, equities, and crypto. In my view, a key revenue vertical will be Helios scaling. Management expects over $1 billion in average annual revenue potential. However, given its low profitability, Galaxy seems too expensive to warrant a bullish rating. Thus, I lean neutral at these levels. Galaxy Digital ( OTCPK:BRPHF ) ( GLXY ) (GLXY:CA) has a digital-assets franchise and a multi-GW AI/HPC infrastructure business. Management frames tokenization as the practical bridge between traditional finance (TradFi) and crypto. As of June 2025, Galaxy reported approximately $9 billion in combined assets on the platform and exposure to Bitcoin ( BTC-USD ) and Ethereum ( ETH-USD ). They also mentioned other venture stakes and infrastructure bets with their Helios campus for AI-compute demand. Their Helios campus has an anchor tenant (CoreWeave) that has committed 526 MW on a 15-year deal. But despite all of its positives, I feel Galaxy’s valuation leaves little upside potential at its current premium valuation. Crypto Finance Ambitions Galaxy Digital Holdings Ltd. is effectively a financial services company focused on digital assets and high-performance computing (HPC) infrastructure. BRPHF was incorporated in July 2018 as a Cayman Islands firm. In May 2025, it converted to a Delaware corporation and started listing on Nasdaq as “GLXY.” However, it also trades under an OTC ticker as “BRPHF,” and its principal address is currently listed in New York. Source: Corporate Presentation. August 2025. As a quick overview, their businesses include digital assets, with institutional trading and lending, plus asset management. Galaxy also has infrastructure solutions with Exchange-Traded Funds (ETFs) and prime and custody operations. Galaxy frames digital assets as an opportunity that’s still in the very early stages. Their thesis is that the global crypto market is currently $4 trillion, but over $700 trillion of traditional markets may be tokenized. And, as you might imagine, even capturing a tiny portion of that new potential market could imply a massive addressable pool of new funds. Moreover, growing adoption is possible because digital assets are a combination of technology and finance. In practice, this can deliver new value verticals with programmable information through crypto, stablecoins, and tokenized US Treasury bills (T-bills). Institutional-grade products like ETFs, derivatives, and securities are already attractive for traditional investors. So, at the crossroads of these two TAMs, Galaxy could potentially capture and deliver significant shareholder value over time. Source: Corporate Presentation. August 2025. As for Galaxy’s digital assets platform, they have a platform for franchise trading and investment banking solutions. Galaxy’s franchise exchange offers OTC spot and derivatives trading, liquidity, and financing to institutions. The investment banking provides traditional M&A, equity, and debt capital markets and advisory for crypto, Web3, and AI-infrastructure customers. So far, they’ve reported 1,445 total trading institutions served, $1.1 billion in average loan book size during Q2 2025, and more than 100 unique crypto assets supported in transactions. They support networks like Ethereum, Solana ( SOL-USD ), Celestia ( TIA-USD ), Sui ( SUI-USD ), EigenLayer, Avalanche ( AVAX-USD ), Near ( NEAR-USD ), Akash ( AKT-USD ), and Injective ( INJ-USD ), among others. Additionally, Galaxy’s infrastructure for digital assets presents staking solutions to secure loans and a staking operating system. This includes a GK8 , a self-custody platform for institutional cold and hot custody, and multi-party computation ((MPC)). The combined assets on that platform had a total of $9 billion as of June 30, 2025. This includes ETFs and exchange-traded products (ETPs) ($3.3 billion), staked assets ($3.1 billion), and what they deem as “alternatives” ($2.4 billion). Overall, Galaxy holds a diversified mix of crypto and investments on its balance sheet. In total, they have around $748 million, including spot BTC and wrappers (wBTC, BTC funds, and ETPs), $196 million in spot ETH, and ETH wrappers, $330 million in other token exposure, and $718 million in stakes in private crypto and Web3 companies, funds, and other private-equity holdings. Source: Corporate Presentation. August 2025. Furthermore, Galaxy is focused on building and operating large power-ready datacenters and HPC with strategic customers in AI compute. Management claims that global demand for data center capacity is expected to rise from 55 GW in 2023 to 219 GW by 2030, or 298% growth. Annual datacenter spending is shown to increase from $349 billion in 2024 to a predicted $800 billion in 2028. In fact, management believes that giant cloud and platform companies that run massive data centers may invest more than $350 billion in 2025 alone. From Tokenized T-Bills to a Retail Super App Thus, meeting such demand would require building double the capacity added in the last 24 years, within the following five years. That’s why Galaxy aims to meet the infrastructure demand with its 1,500-acre Helios campus. This facility is located in Dickens County, Texas, with 800 MW committed (contracts signed), 800 MW with permissions to build for that load, and up to 3.5 GW evaluated for future phases. The campus is in the ERCOT West power zone that provides faster interconnection timelines and flexible market structures that facilitate power-dense AI builds. Source: Corporate Presentation. August 2025. On top of that, Galaxy’s AI-HPC has CoreWeave as the main long-term customer. CoreWeave has already committed to 526 MW of critical IT load at Helios, which is supposed to be delivered in three phases. The first one with 133 MW, then 260 MW, and lastly 133 MW coming online in the first semester of 2026, 2027, and 2028, respectively. The deal runs for 15 years, and management thinks these phases combined will translate into $1 billion in average annual revenue. Plus, having a blue-chip AI cloud as an anchor further de-risks their bet on Helios. It’s worth mentioning that in September 2025, Galaxy reported that it’s preparing a tokenized money market fund ( MMF ) that will live on Ethereum, Solana, and Stellar. It will compete with on-chain fund shares like BlackRock’s ( BLK ) BUIDL and Franklin Templeton’s BENJI ( BEN ). Galaxy wants an on-chain MMF that behaves with the speed of a stablecoin, but with the safety profile of T-bill collateral. Then, by October 2025, Galaxy launched GalaxyOne , a US retail platform that moves the company beyond institutional services. GalaxyOne intends to tap into consumer finance, aiming to be a one-stop shop for cash, crypto, and stocks. Source: Corporate Presentation. August 2025. GalaxyOne’s platform offers an alternative to SoFi, Robinhood, and Coinbase, with monetization spreading to cash, trading, and higher-margin structured yield products. In practice, GalaxyOne is a rebranding of Galaxy’s Fierce platform, which the company bought back in 2024. Though this optimistic ambition has a few caveats . After all, the FDIC insurance applies only to the cash deposit account, not to crypto or securities. Also, the 8% “Premium Yield” is an investment product offered only to accredited investors. So, time will tell if this platform works as well when offered to retail demand. Valuation and Risk Analysis Now, from a valuation perspective, Galaxy trades at a $14.9 billion market cap, which shows they’re already a sizeable operation. Their latest 10-Q shows their balance sheet holds $691.3 million in cash, but the bulk of their liquid assets is in tokens (around $1.3 billion in Bitcoin, Ethereum, and other tokens). In any event, the 10-Q records around $2.8 billion in digital assets borrowed, $348.2 million in loans payable, $1.9 billion in collateral payable, and $725.6 million in notes payable. That amounts to a substantial amount of financial debt of approximately $5.8 billion. So, I estimate Galaxy’s enterprise value at roughly $18.7 billion if we include its tokens as liquid resources akin to cash. Source: Corporate Presentation. August 2025. Moreover, if Galaxy delivers on its plans with Helios, this would imply an additional yearly revenue vertical of over $1.0 billion by 2028. Plus, Galaxy already generates around $21.9 billion in sales during 1H2025. So, if we annualize that figure and add the $1 billion from Helios, I estimate Galaxy’s revenue potential at roughly $44.8 billion. That would actually price Galaxy at a forward EV/S of approximately 0.4. This is quite a discount relative to its peers’ median forward EV/S of 3.0. Source: Galaxy’s 2Q 2025 10-Q report. Naturally, Galaxy’s business is inherently volatile and cyclical as it’s tightly linked to crypto. And I feel the topline figures on their current revenues can be a bit misleading. You see, Galaxy includes digital-asset sales and purchases as revenues whenever they act as a principal, which is why their topline is impressive. But, despite their massive scale, they actually have EBIT losses of approximately $225.4 million over 1H2025 because Galaxy’s revenues are matched by proportional transaction expenses as well. That’s why I feel its bull case with Helios is key, but even this will take years to fully materialize (until 2028 for Phase 3). And while it’s possible their margins will increase over time on the bulk of their revenues, I don’t think it’s worth being bullish on that at these levels. After all, there are a lot of assumptions baked into its best-case scenario, and Helios will also take a few years to fully play out. Source: Galaxy’s 2Q 2025 10-Q report. Fortunately, I estimate Galaxy has a relatively low cash burn at this point. Using their 10-Q figures, I calculate its cash burn at around $59.2 million over 1H2025. Note that I got this figure by adding its cash flows from operations ($329.3 million) and net CAPEX (-$388.5 million). And annualizing that burn rate, it works out to about $118.4 million. This would imply a very healthy cash runway of at least 5.8 years if we just consider its actual cash balances of $691.3 million (and exclude liquid token assets). So, I do feel there’s some optionality if management improves its margins and Helios grows as expected over time. Conclusion: It Will Take Time Overall, Galaxy has a very ambitious vision that plans on capitalizing on the growing adoption of crypto by TradFi. However, for the time being, this remains largely speculative and will take time to fully materialize. The stock also trades at a very expensive valuation based on its actual profitability metrics, like EBIT. The main positive is that I do believe Galaxy has the right management and enough resources to deliver on its vision with Helios. Also, I concede its EBIT margins may improve over time. Yet, on balance, I don’t think there’s enough upside potential at these levels to justify a bullish rating, which is why I lean towards a “Hold” for now.
