Galaxy Digital stock is soaring and crypto isn't behind the rally

Investors are piling into Galaxy Digital (NASDAQ: GLXY) this morning, but the enthusiasm does not really have anything to do with Bitcoin or Ethereum.

Instead, GLXY shares are pushing higher on January 15th, mostly on infrastructure expansion. The company has secured approval to add 830 megawatts of power at its Helios Data Center Campus.

According to the New York-headquartered firm, this ERCOT approval effectively doubles its total capacity to 1.6 gigawatts. Year-to-date, Galaxy Digital stock is now up more than 30%.

Why this ERCOT approval is positive for GLXY stock

Galaxy Digital shares are being rewarded because the approval to expand Helios by 830 megawatts is more than a technical milestone for the Nasdaq-listed firm – it’s a strategic leap.

Data centers are the “backbone” of both crypto mining and artificial intelligence (AI) workloads – and power capacity on both fronts is the ultimate constraint.

By doubling its footprint to over 1.6 gigawatts, GLXY is reinforcing that it can scale alongside the most demanding industries of the decade.

Over time, this could attract institutional clients, diversify revenue streams, and position the firm as a hybrid player straddling two explosive growth markets.

In short, investors are viewing this infrastructure expansion as a transformative moment, positioning Galaxy Digital not only as a crypto powerhouse but also as a serious contender in the AI infrastructure race.

Crypto remains a long-term tailwind for Galaxy Digital stock

While today’s rally is mostly tied to AI infrastructure, crypto remains an important component of the GLXY story.

Bitcoin has resumed its upward trajectory this month, driven by institutional inflows, ETF adoption, and renewed interest in digital assets as a hedge against monetary uncertainty.

Moreover, the US Senate introduced a long-awaited crypto bill, adding to the momentum in crypto prices.

All in all, both macro factors and structural demand are driving BTC up – and if momentum holds, GLXY stock could benefit directly through its trading, custody, and mining operations.

The key takeaway is: crypto doesn’t need to be the driver every day for Galaxy Digital to thrive – but when it does rally, it provides a powerful secondary tailwind that reinforces the bull case.

How technicals suggest you should play Galaxy Digital

Investors should also note that the rally on Thursday pushed GLXY shares decisively past a major resistance, coinciding with their longer-term moving average (100-day).

This signals continued upward momentum in the weeks ahead, especially since the stock’s relative strength index (RSI) currently sits at 53, only significantly below overbought territory.

What’s also worth mentioning is that Wall Street analysts recommend sticking with Galaxy Digital stock as well.

According to the Wall Street Journal, consensus rating on this crypto and AI stock remains at “buy” with the mean target of about $49, indicating potential upside of another 50% from here.