Formula Growth Buys $4.7M Stake in Galaxy Digital

Montreal-based Formula Growth recently disclosed a significant investment in Galaxy Digital (NASDAQ:GLXY), acquiring 139,195 shares valued at approximately $4.71 million. This new holding constitutes about 1.67% of the fund's reportable U.S. equity assets, aligning with the fund's strategy of maintaining modest individual positions. The investment comes as Galaxy Digital's stock has faced pressure, dropping nearly 40% from late October following a substantial exchangeable notes offering.

Despite share price volatility and underperformance relative to the S&P 500 over the past year, Galaxy Digital demonstrated strong financial performance in the third quarter. The company reported a net income of $505 million and adjusted EBITDA of $629 million, driven by robust trading activity and investment gains. Its balance sheet remains liquid, boasting $1.9 billion in cash and stablecoins, with total equity at $3.2 billion at quarter-end.

Furthermore, Galaxy Digital's ambitious Helios data center project is now fully funded, with projections of up to $1 billion in annual revenue upon completion of all phases. This strategic investment by Formula Growth appears to be a bet on Galaxy's diversified digital asset business model, which spans trading, asset management, and AI-linked infrastructure, rather than a short-term play on market noise.