Montreal Investment Firm Takes $4.7M Position in Galaxy Digital Amid Recent Selloff

A Calculated Entry Point

In a move that signals confidence despite recent turbulence, Formula Growth—a Montreal-based investment fund—has accumulated 139,195 shares of Galaxy Digital (NASDAQ: GLXY) through its third-quarter filing with the Securities and Exchange Commission. The purchase, valued at approximately $4.71 million as of September 30, represents a deliberate entry into the crypto infrastructure space at a time when the asset class faces skepticism.

The Context: A 40% Decline and Market Questions

The timing of this investment is noteworthy. Galaxy Digital’s stock has collapsed nearly 40% from its late October peak following the company’s announcement of a $1 billion exchangeable notes offering—a financing decision that reignited dilution concerns among existing shareholders. This backdrop makes Formula Growth’s move particularly intriguing, suggesting the fund sees opportunity where others see risk.

At the time of the filing, Galaxy Digital traded at $24 per share, having underperformed the broader market considerably. Over the past year, GLXY gained just 2%, while the S&P 500 surged 16.5%, highlighting the crypto sector’s relative weakness and the skepticism surrounding digital asset plays.

Inside Formula Growth’s Portfolio Construction

The $4.71 million position represents approximately 1.67% of Formula Growth’s $281.08 million in reportable U.S. equity holdings—a modest allocation that aligns with the fund’s overall strategy. This portfolio approach favors balance and measured risk-taking rather than concentrated bets.

The fund’s top five holdings as of the filing reveal its diversified methodology:

• NASDAQ SWIM: $7.53 million (2.7% of assets)
• NYSE JHX: $7.24 million (2.6% of assets)
• NASDAQ TEAM: $6.39 million (2.3% of assets)
• NASDAQ SSYS: $6.38 million (2.3% of assets)
• NASDAQ MU: $6.36 million (2.3% of assets)

The Galaxy Digital position, clustering slightly below these holdings, demonstrates a deliberate approach rather than a high-conviction swing.

The Business Case: Why Fundamentals Matter

Despite market pessimism, Galaxy Digital’s operational performance tells a different story. In Q3 alone, the company posted net income of $505 million and adjusted EBITDA of $629 million—figures driven by record trading activity and investment gains from its diversified business model.

The company’s financial fortress includes $1.9 billion in cash and stablecoins alongside $3.2 billion in total shareholder equity at quarter-end, positioning it with substantial liquidity cushion during market downturns.

Galaxy Digital operates across multiple revenue streams: digital asset trading, derivatives structuring, institutional lending, M&A advisory services spanning the crypto sector, asset management, bitcoin mining operations, and blockchain validator services. This diversification extends beyond pure trading exposure, reducing vulnerability to single-point failures common in earlier-stage crypto firms.

Infrastructure Ambitions: The Helios Catalyst

A significant catalyst lies in Galaxy Digital’s Helios data center initiative, which is now fully funded with potential to generate up to $1 billion in annual revenue once all phases reach operational capacity. This infrastructure play positions the company at the intersection of AI and blockchain—two technology narratives capturing institutional capital flows.

Such infrastructure assets provide recurring revenue potential, moving the business model beyond cyclical trading gains toward more stable, scalable operations.

Why This Matters for Understanding Crypto Investing

Formula Growth’s decision reflects a thesis that Galaxy Digital’s underlying value proposition—a comprehensive platform addressing institutional and corporate demand for digital assets and blockchain solutions—outweighs the temporary disruption from a financing announcement. The fund is betting that advisory capabilities, trading infrastructure, asset management platforms, and AI-linked data center operations ultimately prove more durable than short-term dilution noise.

This represents neither a volatility play nor a speculative gamble, but rather a conviction that Galaxy Digital’s position as a leading financial services provider within the crypto and blockchain ecosystem justifies entry despite near-term headwinds.

The question for other investors: Is the market sufficiently penalizing Galaxy Digital’s business fundamentals, or has Formula Growth identified genuine asymmetric opportunity?