Latest news with #GalaxyDigital
CNBC
a day ago
- Business
- CNBC
ETFs and corporate treasuries should support bitcoin's uptrend in June as tariff uncertainty lingers
In the tug of war between the macroeconomic and crypto adoption stories, blockchain adoption is starting to taking over the bitcoin narrative. Institutions and corporations combined to drive up bitcoin in May. The cryptocurrency ended the month about 10% higher, its second straight monthly rise, driven by strong inflows into bitcoin exchange-traded funds and continued purchases of bitcoin by corporate treasury departments. Bitcoin ETFs saw $5.6 billion in inflows this month, when the number of bitcoin held by public companies grew 4% to $85.6 billion, according to Bitcoin Treasuries . Investors expect the trend to continue in June, and to benefit bitcoin's long-term performance. The uncertainty of President Donald Trump's tariff policy has so far helped bitcoin more than hurt it – the initial sell-off in risk assets after Trump's tariffs were unveiled in April pulled it down to about $76,000, but bitcoin still finished the month up 13.5%. That said, analysts say not to dismiss the downside risk just yet. "The fact that significant policy adjustments can be made at any time, especially around tariffs, makes near-term pricing incredibly difficult," said Chris Rhine, head of liquid active strategies at Galaxy Digital. "The cumulative weight of this policy uncertainty will likely lead to a sharper slowdown in economic activity, particularly in consumer-driven end markets, increasing the likelihood of monetary policy support." In other words, lower interest rates. 1M mountain Bitcoin (BTC) in May Investors have cheered crypto's seeming decoupling from equities in recent weeks, benefiting when there's liquidity in the market and stocks do well, but also in risk-off scenarios where crypto has provided a haven from uncertainty. That best-of-both-worlds scenario has helped support bitcoin's price and bring new buyers to the market. Unfortunately, that dynamic hasn't been meaningfully tested yet, said Federico Brokate, head of U.S. business at 21Shares, a financial technology company focused on providing access to cryptocurrency investments through exchange-traded products. "The macro story is still very important," Brokate said. "If we continue to see that in June, that's going to be very bullish for the asset, price wise. We haven't seen this play out over a sustained period of time, so this is something that a lot of us will be paying attention to over the next few weeks." After reaching a new all-time high on May 22 of $111,999, bitcoin retreated to the $104,000 level Friday after Trump reignited fears of a trade war with China . In a social media post, the president claimed China "violated" its current trade agreement with the U.S., one day after Treasury Secretary Bessent said in a Fox News interview that U.S.-China trade talks "are a bit stalled." The shadow of unpredictability aside, investors are optimistic about bitcoin's direction, primarily monitoring bitcoin ETF flows, corporate treasury announcements and regulatory developments. After an early block, the 'GENIUS' Act, short for Guiding and Establishing National Innovation for U.S. Stablecoins, advanced to the Senate on May 19 and is likely to come up for a floor vote in early June. Whether it passes with bipartisan support or fails to pass, the outcome will likely have an impact on sentiment around bitcoin, Galaxy's Rhine said. Wells Fargo expects "a difficult road ahead" in light of a separate bill to regulate stablecoins in the House, analyst Andrew Bauch said in a note this week. From a technical standpoint, looking solely at price charts, bulls are likely to hold the reins in June, according to Tracy Jin, chief operating officer of crypto exchange MEXC. "[They'll] aim to defend the $109,000 support level, a potential target for downward pressure from hedge funds holding put options," she said. With a new record behind it, bitcoin has now opened the door to the $113,000 to $115,000 zone. That represents "serious resistance on the way to a strategic target of $130,000, Jin said, adding: "If the current pace is maintained and the $115,000 level is successfully overcome, the price may reach $130,000 in June."
Yahoo
2 days ago
- Business
- Yahoo
Is CoreWeave Stock Still a Buy After Its 200% Rally?
CoreWeave shares have soared 200% year to date, defying the broader market's weakness. The artificial intelligence infrastructure specialist posted jaw-dropping 420% revenue growth in the first quarter. Wall Street analysts expect its revenue to more than double in 2026, and profitability is finally in sight. 10 stocks we like better than CoreWeave › Growth stocks have been all over the map this year. Despite bullish projections from analysts heading into 2025, President Donald Trump's global trade reset has weighed on markets: After several ups and downs, the benchmark S&P 500 is essentially flat year to date at the time of this writing. However, against that backdrop, some stocks have delivered incredible gains. CoreWeave (NASDAQ: CRWV), which is up 200% year to date, is a prime example. The artificial intelligence (AI) infrastructure powerhouse has defied gravity amid the market's turbulence, and appears primed for even more gains in the years ahead. CoreWeave is a specialized cloud computing provider that operates GPU-accelerated data centers designed specifically for AI workloads. With more than 33 facilities across the U.S. and Europe, it provides the specific variety of computational horsepower needed to power a host of AI-related needs, from training large language models to supporting generative AI applications. Unlike traditional cloud providers that are now retrofitting existing infrastructure to meet the new demands of their customers, CoreWeave builds its data centers from the ground up for AI computing. Earlier this month, the company delivered blockbuster first-quarter results that sent Wall Street analysts scrambling to raise their price targets on the stock. Revenue rose 420% year over year to $981.6 million, crushing the consensus expectation of $853 million. The quarter's highlight was a five-year, $11.9 billion contract with OpenAI that cemented CoreWeave's status as the go-to infrastructure provider for leading AI companies. What makes CoreWeave's growth particularly compelling is its massive $25.9 billion revenue backlog, which includes $14.7 billion in remaining performance obligations. Further showcasing the company's hypergrowth, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) surged to $606 million, nearly six times greater than in the prior-year period. With 420 megawatts (MW) powering its data centers across the U.S. and Europe, the company has the physical infrastructure to support years of double-digit percentage growth. CoreWeave's ability to secure long-term contracts with blue chip AI customers provides it with exceptional revenue visibility. This enables the company to make infrastructure investments backed by firm customer commitments, reducing execution risk. In Q1, CoreWeave added a substantial amount of contracted power, including a 260 MW expansion with Galaxy Digital. Additional partnerships, such as with Bulk Infrastructure in Europe and Flexential in Q2, underscore the company's accelerating scale. CoreWeave's competitive advantage stems from its purpose-built approach. Traditional cloud providers like Amazon Web Services or Microsoft Azure retrofit existing data centers for AI workloads. CoreWeave's facilities are designed specifically for GPU-intensive computing, and deliver superior performance and cost efficiency as AI models grow more complex and computationally demanding. That's a significant competitive advantage in a rapidly growing market. While CoreWeave's growth has been mind-bending, investors should still consider the significant risks it faces. The company posted a net loss of $314.6 million in Q1, widening from $129.2 million a year earlier, an increase attributable to interest expenses that rose 549% year over year to $264 million. These financing costs reflect the capital-intensive nature of building cutting-edge data centers. Management is guiding for capital expenditures of $20 billion to $23 billion in 2025 alone. To put this in perspective, CoreWeave is spending roughly five times its annual revenue on its infrastructure build-out. Customer concentration presents another risk -- Microsoft alone accounted for 62% of 2024 revenue. While the OpenAI deal will provide some diversification, CoreWeave's dependence on its few biggest clients remains a concern. Additionally, hyperscalers could leverage their massive balance sheets to compete more aggressively with it in the AI infrastructure space. Even after their eye-popping surge this year, CoreWeave shares still look like a compelling option for growth investors who can stomach volatility. Analysts project the company will turn profitable in 2026 while maintaining triple-digit percentage growth rates. The stock offers one of the purest plays available on AI infrastructure demand. For investors who believe we're still in the early innings of the AI revolution, CoreWeave stock remains a buy. Before you buy stock in CoreWeave, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and CoreWeave wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. George Budwell has positions in Microsoft. The Motley Fool has positions in and recommends Amazon and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Is CoreWeave Stock Still a Buy After Its 200% Rally? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
2 days ago
- Business
- Globe and Mail
Galaxy Digital Inc. Announces Pricing of Its Upsized Public Offering of Common Stock
NEW YORK , /CNW/ - Galaxy Digital Inc. ("Galaxy" or the "Company") (NASDAQ: GLXY) (TSX: GLXY), a global leader in digital assets and data center infrastructure, today announced the pricing of its upsized underwritten offering of 31,600,000 shares of its Class A common stock, consisting of 26,400,000 shares offered by Galaxy and 5,200,000 shares offered by certain stockholders of Galaxy, at the public offering price of $19.00 per share. The underwriters for the offering also have a 30-day option to purchase up to 4,740,000 additional secondary shares, at the public offering price less the underwriting discount. The size of the offering increased from the previously announced 29,000,000 shares to 31,600,000 shares. This is Galaxy's first underwritten public offering of its Class A common stock as a listed company on the Nasdaq Global Select Market. The offering is expected to close on June 3, 2025 , subject to customary closing conditions. Galaxy intends to use the net proceeds from the sale of the shares of Class A common stock offered in the offering by Galaxy to purchase newly issued limited partnership units ("LP Units") from its operating subsidiary, Galaxy Digital Holdings LP ("GDH LP"). GDH LP will use the proceeds from the sale of LP Units to finance the continued expansion of its artificial intelligence and high-performance computing infrastructure at its Helios data center campus in the panhandle region of West Texas , and for general corporate purposes. Galaxy will not receive any proceeds from the sale of the shares of the selling stockholders. Goldman Sachs & Co. LLC, Jefferies and Morgan Stanley are acting as active joint book-running managers for the offering; Canaccord Genuity, Cantor, Keefe, Bruyette & Woods, A Stifel Company, Piper Sandler and BTIG are acting as additional joint book-running managers for the offering; and ATB Capital Markets, The Benchmark Company, Compass Point, H.C. Wainwright & Co. and Rosenblatt are acting as co-managers for the offering. Galaxy Digital Partners acted as strategic advisor for the offering. This offering is being made only by means of a prospectus. A registration statement relating to these securities was declared effective by the Securities and Exchange Commission (the "SEC"). Before you invest, you should read the prospectus in that registration statement and other documents Galaxy has filed with the SEC for more complete information about Galaxy and this offering. You may get these documents for free by visiting EDGAR on the SEC website at Alternatively, a copy of the final prospectus related to the offering may be obtained from Galaxy, any underwriter or any dealer participating in the offering, when available, from: Goldman Sachs & Co. LLC, attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone: 1-866-471-2526 or by email at Prospectus-ny@ Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, by telephone (877) 821-7388 or by email at Prospectus_Department@ or Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any shares of Class A common stock, nor shall there be any sale of shares of Class A common stock, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The shares of Class A common stock subject to the offering have not been qualified for distribution by a prospectus in Canada and consequently may not be offered, sold or delivered in Canada or for the account of any Canadian resident except in transactions exempt from, or not subject to, the prospectus requirements of applicable Canadian securities laws. Shares of Class A common stock issued by the Company in Canada as part of the offering will be subject to resale restrictions for a period of four months and one day from the date of their issuance in accordance with applicable Canadian securities law. The TSX has neither approved nor disapproved the contents of this press release. No securities commission or similar regulatory authority in Canada has reviewed or passed on the merits of the offering. ABOUT GALAXY DIGITAL INC. Galaxy Digital Inc. (NASDAQ/TSX: GLXY) is a global leader in digital assets and data center infrastructure, delivering solutions that accelerate progress in finance and artificial intelligence. Our digital assets platform offers institutional access to trading, advisory, asset management, staking, self-custody, and tokenization technology. In addition, we invest in and operate cutting-edge data center infrastructure to power AI and high-performance computing, meeting the growing demand for scalable energy and compute solutions in the U.S. The Company is headquartered in New York City , with offices across North America , Europe , the Middle East and Asia . NOTE REGARDING FORWARD-LOOKING STATEMENTS This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and "forward-looking information" under Canadian securities laws (collectively, "forward-looking statements"). Forward-looking statements are statements other than historical facts and may include statements that address future operating, financial or business performance or Galaxy's strategies or expectations, including those about the offering and the timing of its closing. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this document are based on our current expectations and beliefs concerning future developments and their potential effects on us taking into account information currently available to us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks include, but are not limited to the risks contained in filings we make with the Securities and Exchange Commission (the "SEC") from time to time, including in the prospectus for the offering and in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 , filed with the SEC on May 13, 2025 . Forward-looking statements speak only as of the date they are made. Except as required by law, we assume no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements. You should not take any statement regarding past trends or activities as a representation that the trends or activities will continue in the future. Accordingly, you should not put undue reliance on these statements.
Globe and Mail
5 days ago
- Business
- Globe and Mail
Galaxy Digital Inc. Announces Public Offering of Common Stock
NEW YORK, May 27, 2025 /CNW/ - Galaxy Digital Inc. ("Galaxy" or the "Company") (NASDAQ: GLXY) (TSX: GLXY), a global leader in digital assets and data center infrastructure, today announced an underwritten offering of 29,000,000 shares of its Class A common stock, consisting of 24,150,000 shares offered by Galaxy and 4,850,000 shares offered by certain stockholders of Galaxy. The underwriters for the offering also have a 30-day option to purchase up to 4,350,000 additional shares of its Class A common stock from secondary shares. This is Galaxy's first underwritten public offering of its Class A common stock as a listed company on the Nasdaq Global Select Market.
CNA
5 days ago
- Business
- CNA
Stablecoin giant Circle targets $6.7 billion valuation in US IPO
Circle Internet said on Tuesday it was targeting a valuation of up to $6.71 billion on a fully diluted basis in its New York initial public offering, as the stablecoin giant looks to tap into growing optimism around cryptocurrency. U.S. President Donald Trump's administration has embraced cryptocurrencies and pledged a more "rational" approach to digital asset regulations, encouraging companies from the industry to go public. New York-based Circle and some existing investors are looking to raise up to $624 million by offering 24 million shares priced between $24 and $26 apiece. Cathie Wood's ARK Investment Management has indicated its intention to buy up to $150 million shares of Circle in the IPO. Circle is offering 9.6 million shares in the offering, while selling shareholders, including venture capital firms Accel and General Catalyst, are parting ways with 14.4 million shares. Founded in 2013, Circle is the principal operator of stablecoin USDC, which has a market capitalization of over $60 billion, according to crypto market tracker CoinGecko. Stablecoins are crypto tokens whose value is pegged to a stable asset to protect from wild volatility. In the case of the USDC, the value was pegged to the U.S. dollar. Circle's flotation would be one of the biggest crypto listings since Coinbase Global's stock market debut in 2021. Mike Novogratz's crypto investment company Galaxy Digital debuted on the Nasdaq earlier this month. Circle had previously attempted to go public through a $9 billion blank-check deal with Bob Diamond-backed SPAC, but the deal fell apart in late 2022. Circle, which has tapped 15 banks for the IPO, will list on the New York Stock Exchange under the symbol "CRCL".
