The GLXY stock price has been in a strong uptrend this year and is now hovering near its all-time high, helped by the ongoing tailwinds in the cryptocurrency and artificial intelligence industries. Galaxy Digital shares were trading at $42, a few points below the year-to-date high of $44.25. It has soared by over 1,565% from its lowest point in 2023.
AI and Crypto Tailwinds
Galaxy Digital is a top player in the crypto industry, operating an asset management company with over $9 billion in assets under management (AUM).
It operates its business across numerous services like global markets, asset management, and technology products. Its trading platform offers over-the-counter trading that is mostly for institutions. It also offers institutional crypto lending solutions, investment banking, and crypto derivatives solutions.
The GLXY stock price jumped recently after it launched GalaxyOne, which is focused on retail investors. The GalaxyOne Cash solution offers an FDIC-insured account with up to 4% APY. It also offers a platform for users to buy and sell stocks and cryptocurrencies.
The company has also benefited from the ongoing artificial intelligence industry, which has created a strong demand for more computing power. It has built a large data center in Texas with an approved capacity of 800 megawatts and a future capacity of 2.7 gigawatts.
Its core customer in this is CoreWeave, a company that has received billions of dollars in orders. It expects to start making money from this division in the first half of next year.
The most recent results showed that Galaxy Digital made over $9 million in revenue in the second quarter, bringing the six-month figure to $21 million. This revenue increased from $8.8 million to $18.69 million. It also turned in a small profit in the last quarter.
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The company will likely continue doing well because of the tailwinds on AI and crypto as companies in the AI industry like CoreWeave, IREN, and Nebius are seeing strong revenue growth and premium valuations.
GLXY Stock Price Technical Analysis
The weekly timeframe chart shows that the GLXY stock price has been in a strong uptrend in the past two years. It surged from a low of $2.5 in 2023 to a high of $45 this year.
The stock recently moved above the important resistance level at $37.85, the highest point in April 2021. It has also remained above the 50-day and 100-day Exponential Moving Averages.
Most importantly, the Galaxy stock has formed a cup-and-handle pattern, consisting of a rounded bottom and some consolidation that resembles a cup. This pattern often leads to more upside over time.
This cup has a depth of about 93%. Measuring the same distance from the cup’s upper side at $37 shows that the stock will ultimately jump to $71, which is much higher than the current $42. A drop below the support at $30 will invalidate the bullish outlook.
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