Citigroup Upgraded Galaxy Digital Stock to Buy
The firm cited stronger earnings potential within the company's expanding data center operations.
Updated on Oct. 13, 2026 in Data Centers
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Citigroup raised its price target for Galaxy Digital to $28 from $26 following an upgrade to a Buy rating. Shares of the firm climbed more than 2% in Tuesday premarket trading.
Why it matters
The upgrade reflects optimism regarding the revenue growth of the company's data center business, which recently began providing critical IT capacity to major tenants. This development highlights the firm's strategic pivot to support high-demand data infrastructure.
Galaxy Digital's Helios Data Center Campus in West Texas holds 1,600 MW in approved power capacity. The firm delivered 133 MW of critical IT to CoreWeave, Inc. during the second quarter of 2026.
The players
Citigroup
This multinational investment bank provides financial services and research coverage to global institutional and retail clients.
Galaxy Digital
This financial services and investment management firm specializes in digital assets and data center infrastructure.
CoreWeave, Inc.
This specialized cloud provider focuses on GPU-accelerated infrastructure for artificial intelligence and machine learning workloads.
Morgan Stanley
This global financial services firm offers investment banking, securities, and wealth management services to diverse clients.
BTIG
This financial services firm provides institutional trading and investment banking services alongside equity research.
The details
Galaxy Digital is leveraging proceeds from a $3.5 billion private offering of senior secured notes, completed in July 2026, to fund construction at the Helios I, Phase II campus. The firm expects to benefit from a broader crypto rebound as it expands its capacity to host data center tenants.
Timeline
July 28, 2026: Galaxy completed a $3.5 billion note offering.
August 5, 2026: BTIG reduced its price forecast for the stock.
Second quarter 2026: The company delivered 133 MW of IT capacity to CoreWeave.
October 12, 2026: Morgan Stanley lowered its price forecast for Galaxy Digital.
October 13, 2026: Citigroup upgraded the firm's stock to Buy.
The Tech Race
The firm is transitioning from a digital asset-focused entity into a large-scale provider of power-intensive infrastructure. This shift positions the company to compete directly with traditional data center operators as demand for high-performance computing capacity surges.
The stock performance of firms like Galaxy Digital often reflects shifting institutional sentiment toward blockchain and data infrastructure providers. Investors should note that increased power capacity deployments may lead to long-term changes in the firm's earnings potential.
The takeaway
Galaxy Digital is increasingly betting its future on the convergence of digital assets and physical power infrastructure in Texas. Investors looking at the sector should monitor tenant procurement at the Helios campus as a key indicator of long-term revenue sustainability.
What happens next
A potential announcement of a new tenant for the Helios II facility is anticipated to occur within the next six months.
Further reading
Learn more about the infrastructure market at the Data Centers section.
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