Galaxy Digital (NASDAQ:GLXY) is one of the 10 Must-Watch Stocks Right Now. Galaxy Digital snapped a two-day losing streak on Friday, jumping 8.34 percent to finish at $22.35 apiece, as investors shifted to its US stocks amid the looming delisting of its Canadian shares, while taking advantage of the broader decline to hunt for bargains. Earlier this month, Galaxy Digital (NASDAQ:GLXY) announced plans to delist its shares from the Toronto Stock Exchange effective Thursday, March 19, to focus on its listi ...

Core Viewpoint - Rosenblatt analyst Chris Brendler identifies Cipher Digital (NASDAQ: CIFR) as a leading choice for bitcoin miners transitioning to AI and high-performance computing (HPC), citing its underperformance as a market mismatch compared to peers like TeraWulf (NASDAQ: WULF) [1] Industry Overview - Mining economics are deteriorating due to cryptocurrency price volatility and an increasing global hashrate, leading to a decline in hashprice to $0.031 per TH/day, which creates unprofitable conditions for all but the lowest-cost operators [2] - Operators are increasingly focusing on AI and HPC development rather than expanding mining capacity, as these infrastructure contracts offer long-duration cash flows, better revenue visibility, and higher margins compared to traditional cryptocurrency mining [3] Company Analysis - In a recent analysis, five miners were evaluated: WULF, Galaxy (NASDAQ: GLXY), Marathon Digital Holdings (NASDAQ: MARA), CIFR, and Hut 8 (NASDAQ: HUT) [4] - On an enterprise value basis per active megawatt, MARA is valued at $3.6 million, while WULF holds the highest valuation at $12 million per current megawatt [4] - Hut 8 trades at an enterprise value of $5.2 million per current megawatt and has entered a 15-year lease with Fluidstack for 245 MW of critical IT load, involving a $7 billion agreement with Anthropic, supported by Google and financed by JPMorgan and Goldman Sachs [5] - Galaxy Digital has an enterprise value of $9.3 million per current megawatt and is developing the Helios data center campus in Texas, which recently received additional power capacity approval [6] - Cipher Digital is highlighted as a top pick with a valuation of $9.8 million per current megawatt, supported by a 2.5 GW power pipeline and a 15-year lease with Amazon Web Services for a 300 MW facility [7] - TeraWulf trades at the highest sector valuation of $12 million per current megawatt, with a 28% year-to-date gain and plans for a $1.275 billion secured note offering to fund infrastructure, operating over 500 MW of contracted AI/HPC capacity, pushing total contracted revenue to $9.5 billion [8]

Core Viewpoint - Galaxy Digital (GLXY) shares experienced a significant increase following President Donald Trump's support for the Genius Act, which encourages banks to engage positively with the crypto industry [1][5]. Group 1: Stock Performance - Following Trump's social media post, GLXY's price surpassed its 20-day moving average, indicating a shift in momentum [1]. - Despite the recent gains, Galaxy Digital stock is still down nearly 30% compared to its year-to-date high [2]. Group 2: Regulatory Environment - Trump's criticism of traditional financial institutions for undermining crypto innovation highlights his commitment to establishing the U.S. as the "crypto capital of the world" [5]. - The Genius Act is expected to provide regulatory clarity that will allow Galaxy Digital to scale its stablecoin and payment services, potentially reducing the "regulatory risk premium" associated with the stock [5]. Group 3: Financial Position - Galaxy Digital ended 2025 with $12 billion in assets and $2.6 billion in cash and stablecoins, despite a net loss due to market depreciation [7]. Group 4: Business Strategy - The company is diversifying beyond Bitcoin, focusing on high-margin artificial intelligence (AI) and data center infrastructure, with the Helios campus in Texas set to deliver 133MW to CoreWeave, generating non-crypto-correlated revenue [8]. Group 5: Market Sentiment - Wall Street analysts are highly optimistic about Galaxy Digital, with a consensus rating of "Strong Buy" and a mean target price of approximately $44, suggesting a potential upside of 90% from current levels [10].

Core Viewpoint - Galaxy Digital Inc. is focusing on its Nasdaq listing by voluntarily delisting from the Toronto Stock Exchange, which has led to a significant rebound in its stock price. Group 1: Delisting Announcement - Galaxy Digital's board of directors has decided to delist from the TSX effective March 19, 2026, to concentrate on its Nasdaq listing, as the majority of its average daily trading volume occurs on Nasdaq and other US markets [2] - The delisting initiative aims to reduce additional expenses and administrative requirements associated with maintaining a dual listing [2] Group 2: Shareholder Approval and Buyback Program - Galaxy Digital is not required to seek shareholder approval for the delisting since an alternative market is available for trading its Class A common shares [3] - The ongoing share buyback program for Canadian shares will cease on the delisting date, while repurchase transactions for Nasdaq shares will continue, not exceeding 5 percent of the outstanding Class A common stock at any time within a 12-month period [4] Group 3: Market Reaction - Following the announcement and a surge in Bitcoin prices by as much as 8 percent during the trading session, Galaxy Digital's stock rebounded by 17.70 percent, closing at $24.34 [1][4]

Market Overview - Major U.S. stock benchmarks closed in the green, with the Nasdaq increasing by 1.29%, Russell 2000 by 1.06%, S&P 500 by 0.78%, and Dow Jones by 0.49% [2] - U.S. stocks showed positive momentum, with about two-thirds of issues advancing, marking a strong day for the markets [4] IPO Market Concerns - A new wave of big tech companies is expected to enter the market this year, seeking historic sums at unprecedented valuations, potentially creating a multi-trillion-dollar issue for American portfolios [3] Winners - Bitcoin rose by 7.08% over the last 24 hours, positively impacting several digital asset firms, including Coinbase (+15.9%), Galaxy Digital (+14.7%), and Hut 8 Corp (+13.77%) [5] - Other notable winners include AST SpaceMobile (+11.97%) and Nebius Group (+11.23%) [5] Losers - ImmunityBio's stock is declining despite a price target increase, following a business update and Q4 earnings report [6] - AXT Inc fell by 7.95% after recent spikes, although it has more than doubled in value over the month [6] - Brown-Forman's stock dropped by 7.34% after reporting declining sales since the pandemic [7] - Gitlab's stock decreased by 7.13% due to slower sales forecasts and rumors regarding competition from OpenAI [7]

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving Galaxy Digital Inc. and its officers or directors, following disappointing financial results that led to a significant drop in stock price [1][3]. Financial Performance - On February 3, 2026, Galaxy reported a net loss of $482 million for Q4 2025, which was below analyst expectations. The loss was attributed primarily to the depreciation of digital asset prices during the quarter [3]. - Following the announcement of these results, Galaxy's stock price decreased by $4.46 per share, representing a decline of 16.87%, closing at $21.98 per share on the same day [3]. Legal Investigation - Pomerantz LLP is actively seeking claims from investors of Galaxy Digital Inc. regarding potential securities fraud or other unlawful business practices by the company and its executives [1].

Group 1 - The article discusses an opportunity for GLXY investors to participate in a fraud investigation led by the Schall Law Firm [1] Group 2 - The investigation pertains to Galaxy Digital, indicating potential legal issues that may affect the company's reputation and financial standing [1]

Digital Assets and Market Conditions - The company held digital intangible assets of $3.6 billion, digital financial assets of $988.6 million, and bitcoin and ether spot ETF investments of $535.8 million as of December 31, 2025[124]. - The total crypto market cap declined by approximately 64% in the twelve months ended December 31, 2022, impacting digital asset prices significantly[124]. - The company is dependent on digital asset trading activity, which can be highly volatile and affect its operating results[121]. - The SEC's determination that a digital asset is a "security" could adversely affect its value and the company's financial condition, potentially impacting the market price of its Class A common stock[128]. - The SEC has brought enforcement actions against numerous industry participants, alleging that certain digital assets are securities, with many actions dismissed in 2025[132]. - The classification of a digital asset as a security has significant regulatory implications, including potential liability for unregistered securities offerings and acting as an unregistered broker-dealer[133]. - Reports indicated that over 70% of bitcoin trading volume on digital asset trading platforms was potentially falsified or non-economic, suggesting a smaller actual market size than expected[173]. - The digital asset industry is subject to high volatility, with prices influenced by market adoption and speculation, which could adversely affect the company's financial performance[253]. - Several factors, including global supply and demand, regulatory measures, and competition among cryptocurrencies, can significantly impact the price of digital assets[254]. - The company acknowledges that some purportedly decentralized digital assets may be more centralized than believed, increasing risks associated with price reductions due to adverse events[255]. - The company faces volatility risks associated with stablecoins, which could impact public confidence in digital assets and the broader cryptoeconomy[256]. - There is uncertainty regarding the long-term value of cryptocurrencies and their acceptance as payment, which could lead to increased volatility and affect the company's investment strategies[258]. - Reports suggest that a significant portion of trading volume on digital asset platforms may be fabricated, indicating a potentially smaller market than perceived[261]. Business Operations and Strategy - The company began operations in 2018 and has a limited operating history, making future performance uncertain[116]. - The company's operating results are expected to fluctuate significantly due to the volatile nature of cryptocurrency and market conditions[121]. - The company is in the process of converting its Helios mining campus to AI/HPC data center infrastructure, which poses risks due to lack of experience in this area[117]. - The company’s strategy to expand into the AI/HPC data center business may not be successful, potentially impacting its financial results[115]. - The overall market for AI/HPC data centers is uncertain, with risks related to consumer acceptance, competition, and technological advancements potentially impacting growth[147]. - The company may need to adjust its operations to comply with applicable securities laws if digital assets are deemed securities, which could limit business activities[137]. - The ability to secure additional financing for business development is uncertain, and failure to do so could delay or postpone AI/HPC data center projects[140]. - The company's risk-based assessment procedures for digital assets may evolve, reflecting the complex and changing regulatory environment[134]. - The AI/HPC data center business model relies heavily on a single customer, CoreWeave, which poses a risk to revenue stability and growth[149]. - The success of the AI/HPC data center business is contingent on maintaining and expanding the customer base, with no guarantees of contract renewals or new long-term agreements[151]. - The company plans to expand its operations internationally, which may incur significant expenses and present challenges due to diverse regulatory environments and market practices[215]. - The company faces challenges in establishing and managing international operations, including increased costs related to travel, infrastructure, and legal compliance[217]. Legal and Regulatory Risks - The company faces substantial litigation and regulatory risks that could adversely affect its business and financial condition[115]. - The company accrued a legal provision of $151.0 million as of December 31, 2025, related to civil claims concerning investments and trading in the LUNA digital asset[187]. - The undiscounted amount of the legal provision is $160 million, payable on a predetermined schedule over four years[187]. - The company may face significant legal and regulatory scrutiny, which could lead to increased expenses and harm to its reputation and financial condition[185]. - Acquisitions and investments may require significant management attention and could disrupt business operations, potentially diluting stockholder value[177]. - The company is subject to substantial litigation risks, including individual and class action lawsuits, which can be expensive and disruptive[184]. - Misconduct or errors by employees or business partners could lead to legal liability and financial losses, adversely affecting the company's reputation[180]. - The company may be required to report and remit assets if it is found to be holding assets in violation of anti-money laundering laws[191]. - Increased regulatory scrutiny could result in loss of licenses, increased compliance costs, and damage to the company's brand and reputation[193]. - The company is registered as a money service business and must comply with anti-money laundering rules and regulations applicable to its operations[305]. - The company is subject to ongoing examinations and audits by U.S. federal and state regulators, which may require significant compliance costs and could lead to civil litigation or fines if findings are not properly remediated[307]. - Non-compliance with regulatory obligations could result in investigations and enforcement actions by the FCA or other regulatory authorities in the U.K.[311]. - The company may incur extraordinary expenses due to adverse regulatory changes, potentially impacting its investment and trading strategies[307]. Financial Performance and Risks - The company reported a net loss of approximately $68 million related to its exposure to FTX as of December 31, 2022, but recorded unrealized gains of $26.4 million during the year ended December 31, 2023[197]. - The company has a minimum debt service coverage ratio requirement of 1.40 starting from the first full quarter after stabilization, and a maximum loan-to-cost ratio of 80%[210]. - The company may face liquidity problems if cash flows are insufficient to meet debt obligations, potentially leading to asset disposals or restructuring[207]. - The company recorded a repurchase of its FTX bankruptcy claims for $18.5 million, indicating ongoing management of its financial exposure[197]. - The company is exposed to market risks, particularly in digital assets, which have shown high volatility and could adversely affect investment results[197]. - The company is subject to operational risks from inadequate internal processes and external events, which could materially affect performance[200]. - The company has established risk management policies but acknowledges inherent limitations that could lead to unexpected losses[204]. - The company's asset management revenue primarily consists of fees based on a percentage of AUM, which may decrease due to price movements in managed assets or withdrawals in favor of competitors[222]. - The asset management industry is highly competitive, with low barriers to entry, leading to potential declines in assets under management (AUM), revenue, and earnings due to increased competition and price volatility[220][221]. - The company’s asset management business could be materially affected by difficulties in finding Qualified Custodians for client funds and securities[301]. Operational and Technological Risks - The company experienced a significant operational risk due to reliance on third-party service providers, which could interrupt operations if these providers face difficulties[198]. - The company faces low barriers to entry in digital asset investment banking, increasing competition and risks in differentiating its services[241]. - The company engages in purchasing and writing put and call options on digital and non-digital assets, which entails greater-than-ordinary investment risks, particularly with OTC options[237]. - The company’s investment banking business relies on generating and maintaining profitable client demand for services in the digital asset sector, which is subject to various uncontrollable factors[240]. - The company faces challenges in scaling its borrowing and lending operations due to limited market development and regulatory scrutiny[268]. - The company engages in transactions on DeFi protocols involving liquidity pools, which exposes it to various risks and uncertainties that could adversely affect its business[292]. - The value of digital assets in liquidity pools can experience impermanent loss, which occurs when the value diverges from the initial ratio, potentially leading to losses for liquidity providers[293]. - Market fluctuations can significantly impact the rewards earned from yield farming, with the potential for positions in liquidity pools to be liquidated if asset values decrease[294]. - The company faces regulatory uncertainty regarding yield farming and liquidity pools, which may fall under the purview of various regulatory authorities[295]. - The complexity of digital asset networks enables new forms of malicious attacks that can adversely affect investments and trading strategies[282]. - Vulnerabilities in smart contracts can lead to significant losses, as demonstrated by past incidents like the MakerDAO flaw[289]. - The company faces risks related to maintaining relationships with banking partners and trading venues, which are crucial for facilitating cryptocurrency transactions[284].

Group 1: AI Developments - Meta (META) plans to deploy millions of Nvidia (NVDA) chips for its AI infrastructure, while Nvidia has exited its investment in Arm Holdings (ARM) [3] - Apple (AAPL) is enhancing its AI capabilities with a trio of new and updated devices [8] Group 2: Investment Moves - Warren Buffett's Berkshire Hathaway (BRK.B) has made a new investment in the New York Times (NYT) while reducing its stake in Amazon (AMZN) [3] Group 3: Economic and Fiscal Policies - New York City Mayor Zohran Mamdani proposed a 9.5% property tax increase as a last resort to address a $5.4 billion two-year revenue shortfall, contingent on the failure of a tax on high earners [4][5] - The mayor's preliminary budget is set at $127 billion, and if the property tax is raised, it would be the first increase in over two decades, potentially leading to higher rents and business relocations [6] - Governor Kathy Hochul announced an additional $1.5 billion allocation over two years to assist New York City's fiscal challenges but opposes the property tax increase [7] Group 4: Market Movements - In Asia, Japan's market rose by 1%, while in Europe, London, Paris, and Frankfurt saw increases of 1%, 0.5%, and 0.8% respectively [9] - U.S. futures indicate a positive outlook with Dow, S&P, and Nasdaq all up by 0.4% to 0.5%, while crude oil prices increased by 1.9% to $63.41 [9]

Group 1 - Galaxy Digital Inc. is under investigation by Pomerantz LLP for potential securities fraud or unlawful business practices involving its officers and/or directors [1] - On February 3, 2026, Galaxy reported a net loss of $482 million for Q4 2025, which was below analyst expectations, primarily due to the depreciation of digital asset prices [2] - Following the financial results announcement, Galaxy's stock price dropped by $4.46 per share, or 16.87%, closing at $21.98 per share [2] Group 2 - Pomerantz LLP is recognized as a leading firm in corporate, securities, and antitrust class litigation, with a history of fighting for victims of securities fraud and corporate misconduct [3]