Credit/Macro/Crypto Analyst, Former Credit/MA PM

Rose Choy

Equity Bottom-Up

<ul>
<li>Galaxy reported 2Q earnings this week and revealed a net loss of over $550 million, driven by realized and unrealized losses in both digital assets and investments.</li>
<li>With $1 billion cash, Galaxy is now in “clean up” mode but could deploy cash for potential M&amp;A. Management sounds cautious and favors asset management business over other proprietary segments.</li>
<li>However, the current cost base run-rate looks high and despite undemanding stock valuation, we believe upside is capped.</li>
</ul>


Galaxy reported 2Q earnings this week and revealed a net loss of over $550 million, driven by realized and unrealized losses in both digital assets and investments.
With $1 billion cash, Galaxy is now in “clean up” mode but could deploy cash for potential M&amp;A. Management sounds cautious and favors asset management business over other proprietary segments.
However, the current cost base run-rate looks high and despite undemanding stock valuation, we believe upside is capped.


Revisiting Galaxy Digital Post 2Q Earnings

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>Our outlook remains bullish on global equities (MSCI ACWI) with ACWI-US and the S&amp;P 500 holding above their respective bases at $117 and 5650-5670.</li>
<li>We've discussed since mid-October how we would use any pre-election pullback in the MSCI ACWI or the SPX (U.S. remains our only country overweight) as an opportunity to add exposure</li>
<li>And we continue to see a high probability of significant upside going into year-end and the early part of 2025.</li>
</ul>


Our outlook remains bullish on global equities (MSCI ACWI) with ACWI-US and the S&amp;P 500 holding above their respective bases at $117 and 5650-5670.
We've discussed since mid-October how we would use any pre-election pullback in the MSCI ACWI or the SPX (U.S. remains our only country overweight) as an opportunity to add exposure
And we continue to see a high probability of significant upside going into year-end and the early part of 2025.


Buy the Pullback in MSCI ACWI and S&P 500; Buys in Uranium, Transports, Services, Technology, More

Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Thematic (Sector/Industry)

<ul><li>AI Continues to Grab Investor Interest as Expectations Have It Affecting Nearly Everything AI is in every company now.</li><li>It has been having a major impact on the tech sector for some time, it accelerated in 2024, and is likely to continue driving tech in 2025.</li><li>Every company is now building neutral networks, and this is driving growth in data centers, hardware, and specifically GFP/AI chips. </li></ul>

AI Continues to Grab Investor Interest as Expectations Have It Affecting Nearly Everything AI is in every company now.It has been having a major impact on the tech sector for some time, it accelerated in 2024, and is likely to continue driving tech in 2025.Every company is now building neutral networks, and this is driving growth in data centers, hardware, and specifically GFP/AI chips. 

WTR Small-Cap Spotlight Recap Tech Trends for 2025

<ul>
<li>Galaxy Digital (GLXY) was worth more than C$14 bn in 2021, but by May 2022 GLXY traded down to a market cap of less than C$2.8 bn.</li>
<li>Founder Mike Novogratz, a supporter of Luna, tattooed LUNA on his arm and tweeted “I’m a Lunatic!” As LUNA went into a death spiral, GLXY shares have been hit hard.</li>
<li>However, there’s more than meets the eye, or the tattoo, in GLXY and we see value in the current share price range.</li>
</ul>


Galaxy Digital (GLXY) was worth more than C$14 bn in 2021, but by May 2022 GLXY traded down to a market cap of less than C$2.8 bn.
Founder Mike Novogratz, a supporter of Luna, tattooed LUNA on his arm and tweeted “I’m a Lunatic!” As LUNA went into a death spiral, GLXY shares have been hit hard.
However, there’s more than meets the eye, or the tattoo, in GLXY and we see value in the current share price range.


Galaxy Digital:  Beyond the Ink – a Sum of the Parts of Valuation

United States

Galaxy Digital Holdings Ltd. is a limited partner in Galaxy Digital LP, a merchant banking institution dedicated to the digital assets and blockchain technology sector. The firm operates across four business lines: asset management, trading, principle investments, and advisory services.

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Galaxy (GLXY CN)

Revisiting Galaxy Digital Post 2Q Earnings

Galaxy reported 2Q earnings with a $550 million net loss. With management sounding cautious, a still too high cost-base, despite undemanding stock...

Rose Choy

Buy the Pullback in MSCI ACWI and S&P 500; Buys in Uranium, Transports, Services, Technology, More

Buy the Pullback in MSCI $ACWI and $SPX; Still bullish on global equities with $ACWI and the SPX holding above their respective bases at $117 and...

Vermilion Research

WTR Small-Cap Spotlight Recap Tech Trends for 2025

AI Continues to Grab Investor Interest as Expectations Have It Affecting Nearly Everything AI is in every company now. It has been having a major...

Water Tower Research

Galaxy Digital: Beyond the Ink – a Sum of the Parts of Valuation

Galaxy Digital, one the few listed crypto companies, traded sharply lower amidst the crypto market crash and LUNA death spiral. Is the selling too...

Rose Choy

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