Galaxy Digital Soars 5.89% on Power Expansion and Analyst Optimism: Is This the Start of a Bull Run?

Summary
• Galaxy Digital (GLXY) surges 5.89% intraday to $33.875, breaking above $34.73 highs amid ERCOT power expansion and tokenized CLO news.
• Analysts project 52% upside with a $48.63 average price target, while Q4 results on Feb 3 add near-term catalysts.
• Options chain shows extreme implied volatility (135%–239%) and leveraged call options trading at 3.72%–6.13% leverage ratios.

Galaxy Digital’s 5.89% intraday rally has ignited investor frenzy, driven by a landmark ERCOT power approval for its Helios data center and a $75M tokenized CLO debut. With the stock trading at 34.73 highs and RSI at 76.21 (overbought), the move reflects a perfect storm of operational milestones, analyst optimism, and speculative options activity.

Helios Expansion and Tokenized CLO Drive GLXY's Rally
Galaxy Digital’s 5.89% surge stems from two pivotal developments: ERCOT approving an additional 830 MW for its Helios data center, doubling total power capacity to 1.6 GW, and the completion of a $75M tokenized CLO with Grove. These moves solidify Helios’s revenue runway and diversify Galaxy’s lending balance sheet. Analysts cite these as catalysts for a potential 52% upside, with the Feb 3 Q4 results webcast adding near-term momentum. The stock’s 5.2% Friday close aligns with a Zacks Rank 2 (Buy) and 28.5% upward EPS estimate revisions over 30 days.

IT Services Sector Gains Momentum as Galaxy Digital Surpasses IBM's Rally
The IT Services sector, led by IBM’s 2.78% intraday gain, shows broad-based strength. Galaxy Digital’s 5.89% rally outpaces IBM’s performance, reflecting its unique positioning in crypto/data-center convergence. While IBM focuses on traditional enterprise IT, Galaxy’s pivot to AI-driven infrastructure and tokenized credit products positions it as a disruptor in a sector primed for AI-driven growth.

Options and ETFs for Capitalizing on GLXY's Bullish Momentum
• Technical Indicators: RSI at 76.21 (overbought), MACD 0.48 (bullish), Bollinger Upper Band at 29.52 (below current price).
• Key Levels: 34.73 (intraday high), 32.38 (low), 33.875 (current).
• Options Focus: High-IV calls with moderate deltas and strong liquidity.

Top Options Picks:
• GLXY20260123C27: Call, Strike $27, Expiry 2026-01-23, IV 150.24%, Leverage 4.52%, Delta 0.8728, Theta -0.2136, Gamma 0.0276, Turnover 14,522. High gamma ensures sensitivity to price moves; moderate delta balances risk/reward. Payoff: At 5% upside (35.57), profit = 35.57 - 27 = $8.57/share.
• GLXY20260123C28.5: Call, Strike $28.5, Expiry 2026-01-23, IV 128.05%, Leverage 5.86%, Delta 0.8453, Theta -0.2137, Gamma 0.0370, Turnover 8,646. Strong gamma and liquidity make it ideal for short-term volatility. Payoff: 35.57 - 28.5 = $7.07/share.

Aggressive bulls should target GLXY20260123C27 into a break above 34.73. If 34.73 holds, consider rolling into higher strikes as IV normalizes.

Backtest Galaxy Digital Stock Performance
The GLXY ETF has demonstrated positive performance following a 6% intraday increase from 2022 to the present date. The backtest data shows 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 period was 15.27%, which occurred on day 59, suggesting that GLXY can experience significant gains following a 6% intraday surge.

Act Now: Galaxy Digital's Breakout Could Signal a New Bull Phase
Galaxy Digital’s 5.89% surge is underpinned by operational milestones, analyst optimism, and a bullish technical setup. While RSI at 76.21 suggests overbought conditions, the stock’s 52W high of $45.92 remains a key target. Monitor IBM’s 2.78% rally for sector validation. For aggressive traders, GLXY20260123C27 offers high gamma exposure if 34.73 breaks. Conservative investors should wait for a pullback to 32.38 support before entering. The next 72 hours will test sustainability—watch the Feb 3 Q4 results for confirmation.