Galaxy Digital is heating up again. The crypto merchant bank posted $12.89 billion in revenue for Q1 2025, up 4,851.53% year-over-year. That’s not a typo. The beat came in $12.77 billion above consensus. EPS missed at negative $0.86, but the top-line shock is what matters. The next earnings drop lands August 12 before market open. Street consensus is $0.30 EPS on $15.07 billion revenue. If they hit that, GLXY rerates fast.
The GENIUS Act is the tailwind. Passed in May, it allows digital asset firms to access Fed clearing and custody services if they meet new compliance benchmarks. Galaxy is already aligned. They’ve expanded custody through GK8, scaled OTC trading, and launched tokenized treasury products for institutional clients. The act also unlocks access to federal liquidity windows. That’s a game changer for crypto-native banks.
GLXY trades at $21.45, up 3.97% on July 14. Pre-market quotes show $21.60. Book value per share is $21.38. That’s tight. Net income last quarter was negative $188.54 million, but free cash flow flipped positive at $133.94 million. Debt sits at $5.66 billion against $5.32 billion in cash. The balance sheet is stretched, but manageable if revenue holds.
Bullish setup is clear. The GENIUS Act opens new revenue channels. Institutional adoption is rising. Galaxy’s asset management arm crossed $5 billion AUM. They’re expanding tokenization and launching new structured products. Retail inflows are back. GLXY volume hit 4.27 million shares on July 14, above the 65-day average of 3.7 million. The stock is liquid and moving.
Bearish flags? EPS volatility is real. Diluted EPS dropped to 0.76 from 0.89 last year. Debt-to-equity is elevated. Regulatory risk still lingers. And crypto markets are fragile. But Galaxy isn’t chasing hype. They’re building infrastructure.
Holding through earnings makes sense if you’re betting on policy tailwinds and institutional growth. The GENIUS Act changed the game. Galaxy is positioned to capitalize.
Disclaimer: Not financial advice.
Sources:
https://seekingalpha.com/symbol/GLXY/earnings
https://www.zacks.com/stock/quote/GLXY/detailed-earning-estimates
https://stockanalysis.com/stocks/glxy/financials/
https://investor.galaxy.com/financials/quarterly-results/default.aspx