Galaxy Digital's Expansion Sparks Investor Optimism: High-Performance Computing at the Forefront
Galaxy Digital shares surge as it expands high-performance computing infrastructure, enhancing crypto and AI capabilities.
Galaxy Digital Inc. (GLXY) witnessed a significant surge in its share price during after-hours trading on Wednesday. This upward movement seems to be driven by growing investor optimism following the company's strategic expansion into high-performance computing.
Last month, Galaxy Digital announced a substantial 29 million share offering. The funds raised are aimed at bolstering the company's high-performance computing infrastructure, primarily at its Helios data center campus located in West Texas. This move underscores Galaxy Digital's commitment to strengthening its digital asset and AI infrastructure capabilities.
In addition to this, Galaxy Digital has forged a new agreement with CoreWeave Inc. (CRWV), a prominent AI cloud-computing provider. This partnership will add an impressive 260 megawatts to the Helios data center, further enhancing its computing power and efficiency.
Galaxy Digital is also making waves in its core cryptocurrency business. The company recently partnered with the staking protocol Liquid Collective. This collaboration aims to drive institutional adoption of liquid staking, further solidifying Galaxy's position in the cryptocurrency sector.
Since its inception, Galaxy Digital has been an active player on the Toronto Stock Exchange and OTC markets. Last month, the company made its highly anticipated debut on Nasdaq, marking a significant milestone in its growth journey. Founded by billionaire Mike Novogratz, Galaxy Digital is reportedly in discussions with regulators regarding the potential tokenization of its stock, a move that could revolutionize its market presence.
On the trading front, Galaxy's shares climbed 6.72% in after-hours trading, following a 2.97% increase during Wednesday's regular trading session, closing at $19.04, according to Benzinga Pro data. Despite these gains, the stock has experienced a 19% decline since its launch.
In contrast, CoreWeave shares saw a slight dip of 0.29% in after-hours trading after a 1.12% decline during the regular session. As Galaxy Digital continues to expand its high-performance computing capabilities, investor interest remains piqued, with many speculating on future price movements and opportunities in the evolving digital asset landscape.