Galaxy Digital Inc. (NASDAQ:GLXY) is experiencing notable stock price appreciation following the completion of key interconnection studies and the acquisition of approval to expand power capacity at its Helios data center campus located in Texas. This development reflects a critical stage in the company's strategy to enhance infrastructure capabilities within the rapidly growing artificial intelligence (AI) and high-performance computing (HPC) markets.
Official communication from Galaxy Digital detailed the successful completion of a Large Load Interconnection Study and subsequent approval from the Electric Reliability Council of Texas (ERCOT) for an additional 830 megawatts (MW) of electrical power capacity. This increment effectively doubles the campus's approved power allotment to more than 1.6 gigawatts (GW), underscoring the company’s substantial expansion plans.
The Helios data center facility, currently under construction, is being developed to accommodate multi-tenant partnerships that demand significant and scalable computing resources. The newly approved power capacity is crucial to supporting these partnerships and aligns with long-term development goals. Galaxy Digital has indicated it remains on track to initiate power delivery as soon as early 2026, a timeline that represents a landmark progression in deploying its data center infrastructure.
This expansion signals Galaxy Digital's intent to solidify its footing within the AI and HPC infrastructure ecosystem, delivering the necessary power infrastructure to handle the intensive computational workloads that characterize these sectors. By increasing capacity, the company enhances its ability to offer robust, scalable solutions to potential and existing clients, which may include cloud service providers and technology firms seeking cutting-edge data center services.
Market response to this announcement has been robust. As of the latest trading session, Galaxy Digital’s shares have displayed upward momentum, trading approximately 19.4% above their 20-day simple moving average (SMA), signaling short-term strength. However, the stock price is still marginally below the 100-day SMA by about 1.6%, indicative of some resistance at longer-term moving averages.
Over the past twelve months, the company’s stock value has appreciated nearly 29%, drawing closer to its 52-week highs rather than lows, a trend reflecting sustained investor enthusiasm. Technical indicators support a cautiously bullish outlook, with the Relative Strength Index (RSI) residing in neutral territory around 59.50, meaning the stock is neither overbought nor oversold. In tandem, the Moving Average Convergence Divergence (MACD) remains above its signal line, reinforcing the bullish sentiment toward the stock.
Analysts have also weighed in on Galaxy Digital’s prospects, assigning a consensus Buy rating and projecting an average price target of $44.80, suggesting a significant potential upside compared to current levels. Several recent analyst actions include initiation of coverage by Citizens with a Market Outperform rating and a $60 target, alongside neutral stances from Goldman Sachs with price targets adjusted between $26 and $30 across December and November 2025. These valuations imply that while the stock is trading at a premium price-to-earnings ratio (P/E) of 50.3x, reflective of elevated market expectations, there is broad confidence in the company’s growth trajectory and infrastructure expansion capabilities.
Galaxy Digital’s forthcoming earnings report, due February 3, 2026, is anticipated with EPS estimated at negative $0.17 and revenue projected around $16.53 billion. This report will offer additional insights into the company's financial health amid its aggressive capacity-building initiatives.
Investor sentiment, while overall positive, is moderated by valuation concerns. According to Benzinga Edge rankings, Galaxy Digital scores high on momentum (83/100) for outperforming the broader market but ranks very low on value metrics (4/100), signaling that the current stock price reflects a premium and may be pricing in ideal operating conditions. Market observers recommend that while investors might capitalize on the strong trend, cautious risk management strategies such as employing tight stop-loss orders should be considered.
Galaxy Digital’s recent market performance includes a 7.59% stock price increase, trading near $30.33 at the latest measurement, which aligns with growing confidence catalyzed by the capacity approval news. Key technical support and resistance levels are identified around $25.50 and $30.50 respectively, representing benchmarks for short-term price movement and potential volatility.
Overall, Galaxy Digital’s improved infrastructure capacity at its Helios data center campus marks a meaningful advancement toward fulfilling increasing demand in AI and HPC markets. The company's strategy is underpinned by substantial power upgrades, analyst optimism, and technical indicators signaling bullish momentum, balanced against premium valuation metrics that counsel prudent investment considerations.