Key Takeaways
- • Galaxy Digital (GLXY) has fallen to $14.68, more than 68% below its 2025 peak and at its lowest level since April of last year, according to Invezz.
- • Invezz attributes the decline to a continued crypto market retreat and AI-sector concerns, citing Galaxy's dependence on CoreWeave, its largest client, whose bond yields have reached 15%.
- • Galaxy's most recent reported revenue fell 15% to $8.71 billion, with a net loss of over $85 million.
- • Analysts' average estimate for third-quarter revenue is $12.1 billion, down 70% year over year, and $52.5 billion for the full year, down 37%.
- • The article issues short-term trading calls on GLXY ahead of earnings. These are Invezz's views and are not endorsed here.
Summary
Galaxy Digital shares have slumped sharply in recent months, moving from a high of $36.11 in June to $14.68, according to Invezz. The stock has broken below the $16.67 support level and formed a death cross, in which the 50-day moving average crosses below the 200-day. Invezz also notes that the stock trades below its Supertrend indicator and that the Average Directional Index has risen to 28.2, its highest reading since May 18. Invezz reads these signals as bearish and sees potential further downside toward $10.
Invezz identifies two main headwinds. The first is the ongoing crypto market retreat affecting Bitcoin and other altcoins. Galaxy's most recent results showed revenue down 15% to $8.71 billion as the crypto downturn continued, with a net loss of over $85 million. The second is AI-sector anxiety. Galaxy is spending heavily on data centers, and CoreWeave, which holds a $104 billion backlog, is its largest client. Invezz notes that CoreWeave faces substantial risks, with its bond yields at 15%.
Galaxy's upcoming earnings report is the next major catalyst. Analysts surveyed expect third-quarter revenue of $12.1 billion, down 70% from a year earlier, and full-year revenue of $52.5 billion, down 37%. Invezz reports that the options market points to a possible post-earnings rebound, with a put/call ratio of 0.26 and call open interest concentrated at $16. It also cites price targets from Maxim Group ($36), Piper Sandler ($25), Citigroup ($28), and Morgan Stanley ($43). These are third-party estimates as reported by Invezz. The article's trading recommendations rest on the same technical and sentiment analysis and carry the risk that weak crypto activity could widen losses.
Invezz identifies two main headwinds. The first is the ongoing crypto market retreat affecting Bitcoin and other altcoins. Galaxy's most recent results showed revenue down 15% to $8.71 billion as the crypto downturn continued, with a net loss of over $85 million. The second is AI-sector anxiety. Galaxy is spending heavily on data centers, and CoreWeave, which holds a $104 billion backlog, is its largest client. Invezz notes that CoreWeave faces substantial risks, with its bond yields at 15%.
Galaxy's upcoming earnings report is the next major catalyst. Analysts surveyed expect third-quarter revenue of $12.1 billion, down 70% from a year earlier, and full-year revenue of $52.5 billion, down 37%. Invezz reports that the options market points to a possible post-earnings rebound, with a put/call ratio of 0.26 and call open interest concentrated at $16. It also cites price targets from Maxim Group ($36), Piper Sandler ($25), Citigroup ($28), and Morgan Stanley ($43). These are third-party estimates as reported by Invezz. The article's trading recommendations rest on the same technical and sentiment analysis and carry the risk that weak crypto activity could widen losses.
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