This Crypto Stock Fell 40% in Weeks but One Investor Has Revealed a New $4.7 Million Bet
-
Montreal-based Formula Growth acquired a stake in Galaxy Digital in the third quarter, acquiring 139,195 shares.
-
The position was worth approximately $4.7 million as of September 30.
-
GLXY is not among the fund’s top five holdings by position size.
On November 13, Montreal-based Formula Growth announced a new position. Galaxy Digital (NASDAQ:GLXY)purchased 139,195 shares worth approximately $4.71 million.
According to a Securities and Exchange Commission (SEC) filing Formula Growth, dated November 13, created a new position. Galaxy Digital (NASDAQ:GLXY)Bought 139,195 shares. The value of the stock at the end of the reporting period was approximately $4.71 million. The new holding represents approximately 1.67% of the fund’s reportable U.S. equity assets of approximately $281.08 million.
The top five holdings after the application are:
-
NASDAQ: SWIM: $7.53 million (2.7% of AUM)
-
NYSE: JHX: $7.24 million (2.6% of AUM)
-
NASDAQ: TEAM: $6.39 million (2.3% of AUM)
-
NASDAQ: SSYS: $6.38 million (2.3% of AUM)
-
NASDAQ: MU: $6.36 million (2.3% of AUM)
As of Friday, Galaxy Digital’s shares were at $24, up just 2% from last year, well below the S&P 500, which was up 16.5% in the same period.
|
Metric |
Value |
|---|---|
|
Price (as of Friday close) |
$24.00 |
|
Market value |
$9.7 billion |
|
Revenue (TTM) |
$23.3 billion |
|
Net Income (TTM) |
($230.9 million) |
-
Galaxy Digital offers digital asset trading, derivatives, structured products, lending, capital markets, merger and acquisition advisory, asset management, bitcoin mining and verification services.
-
The company generates revenue through trading fees, asset management, financing, advisory services and technology solutions for digital assets and blockchain infrastructure.
-
It serves institutional investors, companies and individuals who want to access digital asset markets and blockchain technology solutions.
Galaxy Digital operates at scale in the digital asset and blockchain industry, leveraging a diversified platform in trading, asset management and infrastructure solutions. The company combines financial expertise with technology innovation to meet the evolving needs of corporate and institutional clients in the digital economy. Its integrated approach and broad product range positions it as a leading financial services provider in the crypto and blockchain ecosystem.
This portfolio generally keeps individual positions modest; Most of the top holdings are clustered just above 2%, so at 1.67% of assets this stock fits a conservative entry pattern, not a high confidence swing. That sizing is important because shares of Galaxy Digital have fallen nearly 40% since the end of October after the company announced a $1 billion convertible note offering, reigniting familiar dilution concerns.
But the underlying business negates the real gains. Galaxy in the third quarter reported Net income of $505 million and adjusted EBITDA of $629 million, driven by record business activity and investment gains. The balance sheet remains liquid, with $1.9 billion in cash and stablecoins and $3.2 billion in equity capital at quarter-end. More importantly, the Helios data center project is now fully funded, with annual revenues expected of up to $1 billion once all phases are completed.
This is probably not a volatility trade after all. It is argued that Galaxy’s diversified exposure to trading, asset management and AI-related infrastructure is ultimately more important than the noise created by a seemingly painful financing decision.
