Galaxy Digital (GLXY) Surges 7.06%: Power Capacity Expansion and Analyst Optimism Ignite Bullish Momentum

Summary
• Galaxy Digital (GLXY) rockets 7.06% to $34.25, hitting an intraday high of $34.29
• ERCOT approves 830 MW power capacity expansion at Helios data center, doubling total approved capacity
• Analysts project 52% upside potential with a mean price target of $48.63
• Technical indicators signal bullish momentum, with RSI at 76.21 and MACD above signal line

Galaxy Digital’s stock is surging on the back of a major infrastructure milestone and analyst optimism. The company’s approval of an additional 830 MW power capacity at its Texas data center campus has reignited investor confidence, while Wall Street’s price targets suggest substantial upside potential. With technical indicators aligning with the bullish narrative, traders are scrambling to position for a potential breakout.

ERCOT Approval and Analyst Price Targets Fuel GLXY’s Rally
Galaxy Digital’s 7.06% intraday surge is directly tied to its recent ERCOT interconnection study approval, which added 830 MW of power capacity at its Helios data center. This expansion, now totaling 1.6 gigawatts, positions the campus to support AI and high-performance computing workloads, aligning with the company’s strategic focus on data center growth. Concurrently, Wall Street analysts have reinforced the bullish case, with a mean price target of $48.63 implying 52% upside. The approval and analyst consensus have attracted institutional buyers, including Thames Capital Management LLC, which initiated a $5.76 million position in Q3 2025.

Options Playbook: High-Leverage Calls and Gamma-Driven Positioning
• 200-day SMA: $29.94 (below current price)
• RSI: 76.21 (overbought but not extreme)
• MACD: 0.476 (bullish divergence)
• Bollinger Bands: Price at 34.25 vs. upper band 29.52 (overextended)

Galaxy Digital’s technicals suggest a continuation of the bullish trend, with key resistance near $34.50 and support at $32.38. The RSI’s overbought reading and MACD’s positive divergence indicate momentum is intact, though the stock’s 3.69% turnover rate suggests caution. For options traders, two contracts stand out:

• GLXY20260123C34:
- Strike: $34 | Expiration: 2026-01-23 | IV: 68.83% | Leverage: 21.86% | Delta: 0.560 | Theta: -0.178 | Gamma: 0.1127 | Turnover: 30,517
- IV (Implied Volatility): High, reflecting strong expectations of price movement
- Leverage: Amplifies returns on a 5% upside (projected price: $35.96)
- Delta: Moderate sensitivity to price changes
- Theta: Aggressive time decay, ideal for short-term plays
- Gamma: High responsiveness to price swings
- Payoff: $1.96 per contract (max(0, 35.96 - 34))
- Why it stands out: High leverage and gamma make it ideal for a continuation of the rally ahead of the 2026-01-23 expiration.

• GLXY20260123C33:
- Strike: $33 | Expiration: 2026-01-23 | IV: 46.41% | Leverage: 19.61% | Delta: 0.732 | Theta: -0.170 | Gamma: 0.1397 | Turnover: 97,083
- IV: Moderate, balancing risk and reward
- Leverage: Strong amplification of gains
- Delta: High probability of in-the-money finish
- Theta: Aggressive decay, suitable for near-term moves
- Gamma: Exceptional sensitivity to price shifts
- Payoff: $1.96 per contract (max(0, 35.96 - 33))
- Why it stands out: High liquidity and gamma make it a top-tier choice for capitalizing on the current momentum.

Action Alert: Aggressive bulls should consider GLXY20260123C34 into a break above $34.50, while GLXY20260123C33 offers a safer, higher-probability play with robust gamma. Both contracts align with the technical case for a continuation of the rally.

Backtest Galaxy Digital Stock Performance
The backtest of GLXY's performance following a 7% intraday increase from 2022 to the present shows favorable results. The ETF has a 3-day win rate of 46.59%, a 10-day win rate of 54.55%, and a 30-day win rate of 56.82%, indicating a higher probability of positive returns in the short term. The maximum return during the backtest was 15.27%, which occurred on day 59, suggesting that GLXY can capitalize on intraday surges with favorable long-term outcomes.

Galaxy Digital’s Breakout: Ride the Momentum or Secure Profits?
Galaxy Digital’s 7.06% surge is driven by a combination of infrastructure expansion, analyst optimism, and technical momentum. The stock’s proximity to its 52-week high and strong options activity suggest a high-probability continuation of the rally. However, the RSI’s overbought reading and Bollinger Bands’ overextension signal caution for overextended positions. Investors should monitor the $34.50 resistance level and the sector leader IBM’s 1.84% intraday gain as a barometer for broader market sentiment. For now, the case for a breakout remains intact—position with discipline and target key levels.