On November 13, Montreal-based Formula Growth disclosed a new position in Galaxy Digital (NASDAQ:GLXY), acquiring 139,195 shares valued at approximately $4.71 million.
What Happened
According to a Securities and Exchange Commission (SEC) filing dated November 13, Formula Growth established a new position in Galaxy Digital (NASDAQ:GLXY), purchasing 139,195 shares. The stake is valued at approximately $4.71 million at the end of the reporting period. The new holding represents approximately 1.67% of the fund’s approximately $281.08 million in reportable U.S. equity assets.
What Else to Know
Top five holdings after the filing:
* NASDAQ: SWIM: $7.53 million (2.7% of AUM)
* NYSE: JHX: $7.24 million (2.6% of AUM)
* NASDAQ: TEAM: $6.39 million (2.3% of AUM)
* NASDAQ: SSYS: $6.38 million (2.3% of AUM)
* NASDAQ: MU: $6.36 million (2.3% of AUM)
As of Friday, shares of Galaxy Digital were priced at $24, up just 2% over the past year and well underperforming the S&P 500, which is up 16.5% in the same period.
Company Overview
Company Snapshot
* Galaxy Digital offers digital asset trading, derivatives, structured products, lending, capital markets, M&A advisory, asset management, bitcoin mining, and validator services.
* The company generates revenue through trading fees, asset management, financing, advisory services, and technology solutions for digital assets and blockchain infrastructure.
* It serves institutional investors, corporations, and individuals seeking exposure to digital asset markets and blockchain technology solutions.
Galaxy Digital operates at scale in the digital asset and blockchain sector, leveraging a diversified platform across trading, asset management, and infrastructure solutions. The company combines financial expertise with technology innovation to address the evolving needs of institutional and corporate clients in the digital economy. Its integrated approach and broad product suite position it as a leading provider of financial services within the crypto and blockchain ecosystem.
Foolish Take
This portfolio typically keeps individual positions modest, with most top holdings clustered just above 2%, so at 1.67% of assets, this stake fits the pattern of a measured entry and not necessarily a high-confidence swing. That sizing matters because shares of Galaxy Digital have dropped nearly 40% from late October after the company announced a $1 billion exchangeable notes offering, reigniting familiar dilution concerns.
Yet the underlying business is throwing off real earnings. In the third quarter, Galaxy reported net income of $505 million and adjusted EBITDA of $629 million, driven by record trading activity and investment gains. The balance sheet remains liquid, with $1.9 billion in cash and stablecoins and total equity of $3.2 billion at quarter-end. Just as important, its Helios data center project is now fully funded, with up to $1 billion in anticipated annual revenue once all phases are delivered.
Ultimately, this likely isn’t a volatility trade. It is a bet that Galaxy’s diversified exposure to trading, asset management, and AI-linked infrastructure ultimately matters more than the noise created by one seemingly painful financing decision.
