Shares of Galaxy Digital Inc. ( GLXY ) are trading higher Monday after the company announced a partnership with K Wave Media.

What To Know: The collaboration is intended to advance Bitcoin treasury strategies and provide access to greater institutional capital. The move positions Galaxy to strengthen its presence in the digital asset space through expanded financial partnerships.

The rally also followed a detailed valuation update from Piper Sandler analysts Patrick Moley and Will Copps, who maintained an Overweight rating on Galaxy shares with a $36 price target. In their note, the analysts provided a deep dive into the sum-of-the-parts valuation of Galaxy's business and evaluated multiple scenarios tied to the company's Helios data center operations in Texas.

The report highlighted that if Galaxy secures approval for its full 2.5 gigawatts of planned power capacity at the Helios site and contracts it at economics similar to its existing 600-megawatt deal with CoreWeave, the stock could be worth up to $43 per share.

The valuation for the Helios data center business alone was estimated between $9.35 and $28.72 per share, depending on the total contracted capacity. Galaxy currently has approval for 800 megawatts of power at Helios and is awaiting regulatory clearance for an additional 1.7 gigawatts from ERCOT.

The analysts noted that the implied valuation range for Galaxy shares spans from $24 to $43, reflecting potential downside of around 13% and upside of about 59% based on recent trading levels. They also cautioned that risks include regulatory changes in the cryptocurrency market, Bitcoin price volatility, energy costs, and operational risks related to mining infrastructure.

Galaxy operates as a diversified digital asset firm, providing services across investment banking, trading, prime brokerage, and asset management. The company's stock moved higher on a mix of the strategic partnership announcement and the renewed analyst focus on its data center expansion potential.

GLXY Price Action: Galaxy Digital ( GLXY ) shares were up 8.51% at $29.44 at the time of writing, according to Benzinga pro.

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