Galaxy Digital Soars 6.34% on Strategic Expansion and Earnings Surge: What’s Fueling This Rally?

Summary
• Galaxy Digital (GLXY) surges 6.34% to $29.67, hitting an intraday high of $30.19
• Q2 earnings highlight record Bitcoin trades and a 187% revenue growth forecast
• Expanded partnership with Soluna Holdings secures 83 MW data center capacity
• Turnover spikes to 2.9 million shares, signaling strong institutional interest

Galaxy Digital’s stock is trading at its highest level since early 2025, driven by a combination of robust Q2 earnings and a strategic partnership with Soluna Holdings. The company’s revenue is projected to grow at a blistering 187% annualized rate over the next three years, outpacing the industry’s 9.5% forecast. Meanwhile, the expanded data center collaboration with Soluna underscores its commitment to scaling Bitcoin mining operations, further fueling investor optimism.

Strategic Expansion and Earnings Surge Drive GLXY's Rally
Galaxy Digital’s 6.34% intraday surge is anchored by two pivotal developments: a record-breaking Q2 earnings report and a landmark partnership with Soluna Holdings. The company’s Q2 results highlighted a 187% revenue growth forecast, driven by surging Bitcoin trades and asset management. Simultaneously, the expanded collaboration with Soluna—deploying 48 MW of Bitcoin mining operations at Project Kati 1—positions Galaxy to capitalize on renewable-powered data center infrastructure. These catalysts, coupled with a 35% monthly price gain, have reignited investor confidence in the stock’s long-term potential.

Data Processing Sector Gains Momentum as EQIX Trails GLXY’s Surge
While Galaxy Digital’s rally is driven by crypto-specific tailwinds, the broader Data Processing & Outsourced Services sector is also gaining traction. Sector leader Equinix (EQIX) rose 0.38% intraday, reflecting steady demand for cloud infrastructure. However, GLXY’s 6.34% jump far outpaces EQIX’s muted performance, underscoring the market’s appetite for high-growth plays in digital assets and AI-driven data centers. The sector’s $3.767 trillion projected market size by 2032 further validates the strategic value of companies like Galaxy.

Options and Technicals: High-Leverage Calls and Key Levels to Watch
• MACD: 1.31 (Signal: 1.63, Histogram: -0.32) – bearish divergence
• RSI: 40.25 – oversold territory
• Bollinger Bands: $24.74 (Lower), $28.22 (Middle), $31.69 (Upper) – price near 10% of upper band
• 30D MA: $25.74 – price trading 15% above

Galaxy Digital’s technicals suggest a short-term consolidation phase after its sharp rally. The RSI at 40.25 indicates oversold conditions, while the MACD histogram’s negative divergence hints at potential near-term weakness. However, the 30D MA at $25.74 and Bollinger Bands suggest a bullish bias if the stock holds above $27.66 (30D support).

Top Options Picks:
• GLXY20250822C29
- Strike: $29 | Expiration: 2025-08-22 | IV: 80.58% | Leverage: 16.77% | Delta: 0.5657 | Theta: -0.1408 | Gamma: 0.1005 | Turnover: 59,033
- IV (Implied Volatility): High volatility suggests strong expectations for price movement
- Leverage: Amplifies returns if the stock breaks above $29
- Delta: Moderate sensitivity to price changes
- Theta: Aggressive time decay, ideal for short-term plays
- Gamma: High sensitivity to price swings, enhancing gains if the stock surges
- Turnover: High liquidity ensures easy entry/exit
- Why it stands out: This call option balances leverage and liquidity, ideal for a bullish breakout above $29. A 5% upside to $31.15 would yield a 62.79% payoff (max(0, 31.15 - 29)).

• GLXY20250822C30
- Strike: $30 | Expiration: 2025-08-22 | IV: 75.99% | Leverage: 24.46% | Delta: 0.4594 | Theta: -0.1260 | Gamma: 0.1075 | Turnover: 115,273
- IV: Moderate volatility aligns with current market expectations
- Leverage: High amplification for a move above $30
- Delta: Sensitive to price but less aggressive than the $29 call
- Theta: Strong time decay, suitable for short-term momentum
- Gamma: High responsiveness to price swings
- Turnover: Exceptional liquidity for a large position
- Why it stands out: The $30 call offers a 24.46% leverage ratio, making it ideal for a breakout above $30. A 5% upside to $31.15 would yield a 62.79% payoff (max(0, 31.15 - 30)).

Action Insight: Aggressive bulls should target the GLXY20250822C29 for a breakout above $29, while the GLXY20250822C30 offers a safer entry if the stock consolidates near $30. Both contracts benefit from high gamma and liquidity, making them ideal for a short-term rally.

Backtest Galaxy Digital Stock Performance
The GLXY ETF has demonstrated positive short-to-medium-term performance following a 6% intraday surge. The backtest data shows that the 3-day win rate is 50%, the 10-day win rate is 61.11%, and the 30-day win rate is 83.33%, indicating a higher probability of positive returns in the immediate aftermath of the surge. The maximum return during the backtest period was 37.99%, which occurred on day 42 after the surge, suggesting that there is potential for further gains if the positive momentum continues.

Seize the Momentum: GLXY’s Strategic Catalysts and Sector Tailwinds Signal a High-Probability Trade
Galaxy Digital’s 6.34% surge is underpinned by a compelling mix of earnings momentum, strategic expansion, and sector tailwinds. The company’s 187% revenue growth forecast and Soluna’s 83 MW data center deployment position it as a key player in the AI and Bitcoin mining boom. While the RSI suggests oversold conditions and the MACD hints at near-term consolidation, the 30D MA and Bollinger Bands indicate a bullish bias. Investors should monitor the $27.66 support level and the $30.50 resistance (sector leader EQIX’s 0.38% gain). For a high-conviction trade, the GLXY20250822C29 and GLXY20250822C30 options offer leveraged exposure to a potential breakout. If the stock holds above $28, the rally could extend toward the 52W high of $33.17.