Catenaa, Monday, February 09, 2026-Galaxy Digital shares fell sharply after reporting a $482 million fourth-quarter loss, but analysts at Benchmark say the market may be overlooking longer-term catalysts tied to U.S. crypto regulation and the company’s AI data center expansion.
Benchmark reiterated a “buy” rating and $57 price target for Galaxy, implying roughly 170% upside from recent trading near $21.
Analysts said near-term volatility is masking potential growth from regulatory clarity and institutional adoption in digital assets.
CEO Mike Novogratz noted a 75% to 80% chance of U.S. crypto market structure legislation passing soon, which analysts say could unlock broader institutional participation.
Galaxy has spent years building trading, lending, and asset management infrastructure aimed at institutional clients, positioning it to capture new capital flows.
Additional partnerships and infrastructure initiatives, including expansion in onchain credit markets, are expected in the coming quarters.
Benchmark also highlighted Galaxy’s Helios data center campus in Texas as an undervalued asset. With more than 1.6 gigawatts of approved power capacity and additional approvals pending, the site is projected to begin generating revenue this year through a lease with AI cloud provider CoreWeave.
Analysts said Helios alone could justify valuations above Galaxy’s current market cap even before considering its crypto operations.
Despite a weaker quarter driven by falling crypto prices, Galaxy’s lending unit continued to grow, with a $1.8 billion loan book. The firm holds $2.6 billion in cash and stablecoins, supporting ongoing crypto infrastructure and AI expansion initiatives.
