Shares plunged 10.3% to $20.36 Tuesday as a broad crypto selloff collided with pre-Fed jitters, dragging Galaxy Digital to its lowest level in weeks. Bitcoin opened at $63,707, down 2.5% from Monday, while Ethereum opened at $1,891, off 3.2%.
The slide came ahead of the Federal Reserve's two-day meeting, with the CME FedWatch tool showing a 35.8% chance of a rate hike — up from 25.7% last week — a shift that punishes assets like crypto that generate no yield.
Galaxy's Stock Fell Four Times Harder Than Bitcoin Itself The 10.3% drop in GLXY dwarfs Bitcoin's roughly 2.8% decline, illustrating a painful reality: the company is still heavily reliant on crypto trading, so changes in the market can have an outsized impact on Galaxy's performance.
At the end of Q1 2026, total assets stood at $10 billion (down from $11 billion) and net digital assets fell 19% quarter-over-quarter to $1.4 billion. When token prices fall, Galaxy's balance sheet shrinks in lockstep — and traders price in that leverage.
A $1 Billion-a-Year Data Center Business Is Now Generating Revenue The silver lining is that Galaxy is no longer a pure crypto bet. On July 6, it completed Phase I of its Helios data center in West Texas, delivering 200 megawatts of power to AI cloud provider CoreWeave under a 15-year lease.
Across all three planned phases, CoreWeave has committed to the full 800 megawatts, expected to generate more than $1 billion in average annual revenue.
Those contracts carry estimated profit margins (EBITDA) around 90% — meaning nearly every dollar of data-center rent flows to the bottom line. That steady income stream did not exist a year ago.
Wall Street Sees Deep Upside, But the Market Isn't Buying It Yet
Benchmark reiterated a "buy" rating with a $57 price target — implying roughly 170% upside — while 12 of 14 analysts have issued Buy or equivalent ratings. Yet the stock has cratered from a $25.41 close just a week ago, reflecting how quickly sentiment evaporates when a sell-off in AI-linked stocks hits risk sentiment, spilling over into cryptocurrencies.
The Fed Decision Tomorrow Could Set the Next Direction
Rate decisions tend to move risk assets fast; a hawkish tone could pressure Bitcoin and Ethereum further, while a softer tone could give inflows a reason to pick back up. For Galaxy, the stakes are doubled: crypto weakness erodes its trading and balance-sheet income, while higher rates also raise borrowing costs on the $1.4 billion debt facility financing Helios. Investors now face a binary bet — a company building durable infrastructure income, trapped inside a vehicle that still trades like a leveraged crypto token.