Citigroup Upgraded Galaxy Digital Stock to Buy
The upgrade reflects stronger earnings projections for the company's expanding data center business.
Updated on Oct. 13, 2026 in Data Centers
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Citigroup has upgraded Galaxy Digital stock to Buy, raising its price forecast from $26 to $28. This move follows the company's recent expansion of its data center infrastructure in West Texas.
Why it matters
The shift in analyst sentiment underscores the increasing value of large-scale power capacity in the data center market. Galaxy's ability to supply power for high-density computing is central to its evolving earnings profile.
The Helios Data Center Campus in West Texas now holds 1,600 MW in approved power capacity. This follows the delivery of 133 MW of critical IT capacity to CoreWeave during the second quarter of 2026.
The players
Galaxy Digital
A financial services firm that has expanded into physical data center infrastructure and power capacity management.
Citigroup
A global financial services corporation providing equity research and investment banking services.
CoreWeave
A specialized cloud infrastructure provider focused on high-performance compute and AI workloads.
Morgan Stanley
A global investment bank that maintains an Overweight rating on Galaxy Digital.
BTIG
A financial services firm that maintains a Buy rating on Galaxy Digital.
The details
Galaxy Digital is funding the construction of its Helios I, Phase II project using proceeds from a $3.5 billion private offering of senior secured notes completed in July 2026. The campus provides high-capacity electrical infrastructure for data center tenants, a strategy that aligns with the firm's pivot toward physical infrastructure assets to support specialized compute demands.
Timeline
July 28, 2026: Galaxy completed a $3.5 billion private offering of notes.
Aug. 5, 2026: BTIG reduced its price forecast for the stock to $45.
Oct. 12, 2026: Morgan Stanley lowered its price target to $43.
Oct. 13, 2026: Citigroup upgraded the stock rating to Buy.
The Tech Race
Galaxy Digital is aggressively competing for market share in the critical IT infrastructure space by leveraging massive power capacity in West Texas. This trajectory aligns with the firm's attempt to diversify revenue away from purely crypto-native financial services.
The stock movement directly affects investors holding the company, which recently traded at $20.35 in premarket sessions. The firm's expansion will primarily impact regional power markets in West Texas as they scale their 1,600 MW capacity.
The takeaway
Galaxy Digital's move into high-capacity infrastructure creates a new, physical anchor for its business model. Investors should monitor the upcoming Helios II tenant announcement as a primary indicator of whether the firm can successfully monetize its 1,600 MW power portfolio.
What happens next
Investors should watch for a potential tenant announcement for the Helios II project, which is projected to occur over the next six months.
Further reading
For a broader look at how companies are scaling power capacity for high-density compute, see the latest updates in Data Centers.
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