GLXY Stock Gains, But Retail Traders Stay Bearish Despite AI Data Center Progress

• Retail investors said they are waiting for updates on Helios tenant agreements and Project Merlin before turning more optimistic on the stock.
• Galaxy said it completed the first phase of its Helios data center campus earlier this week, delivering 133 MW of capacity to CoreWeave.
• Wall Steet remains optimistic despite recent weakness, with Compass Point and Rosenblatt both maintaining bullish ratings on the stock this month.

Galaxy Digital (GLXY) shares rose in midday trade Thursday as crypto-linked equities gained alongside Bitcoin's (BTC) recovery, but retail traders said the bounce hasn't done much to ease months of frustration over the stock's performance.

GLXY’s stock rose nearly 2% on Thursday, and was among the top trending tickers on Stocktwits. However, retail sentiment around the company on Stocktwits has remained in ‘bearish’ territory over the past week. 

Most retail traders on the platform pointed to growing frustration over unclear tenant timelines, with some investors speculating the stock has been neglected or overlooked while the broader AI infrastructure sector has rallied.

One user said they're only holding because of a promised tenant announcement expected by the end of summer and progress on the company's newly disclosed "Project Merlin" site, adding "if they drop the ball on this im 100% out." 

Another described holding purely out of disbelief that the stock could stay this weak, saying "it really is just a horrible company and stock to have ever purchased let alone hold." 

Helios And Project Merlin Drive AI Expansion

The company's most recent operational update came Monday, when it confirmed the first phase of its Helios data center campus in Texas is complete, delivering 133 megawatts (MW) of critical IT load to CoreWeave (CRWV). 

Galaxy said the campus will eventually scale to 1.6 gigawatts (GW) total as part of the company’s broader push into AI and high-performance computing (HPC) infrastructure alongside its crypto and asset management businesses.

Layered on top of Helios is Project Merlin, a newly reported data center project in McGregor, Texas, that received city council approval last month. The development spans a 500-acre site northeast of SpaceX's (SPCX) facilities and involves multiple buildings. 

Wall Street Sees Long-Term Upside

Compass Point trimmed its price target on GLXY stock to $40 from $41 on Wednesday, but kept a ‘Buy’ rating. It stated that the pullback sets up a better entry point ahead of a potential fourth-quarter (Q4) catalyst, and flagged August 31 as a date to watch if ERCOT includes additional unapproved capacity in its next batch review. 

Rosenblatt struck a similar tone in its note to investors cited by TheFly, earlier this month. It called the recent weakness a “buying opportunity” and noted that Galaxy has been "hit harder than most" due to its direct exposure to CoreWeave.

GLXY stock has five ‘Strong Buy’ and nine ‘Buy’ ratings against just two ‘Hold’ ratings and zero ‘Sell’ recommendations, according to Koyfin data. It has an average price target of $41.44, implying a potential upside of around 64% from the stock's current price of over $25.

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