Empire The Bull Case For GLXY With Duncan & Rittenhouse Research
Aug 4, 2025
Duncan from Flood Capital, a prominent voice in the crypto world, joins Rittenhouse Research to discuss the investment potential of Galaxy Digital. They delve into Galaxy's unique business model, poised to thrive at the intersection of AI and cryptocurrency. The conversation explores implications of transforming from Bitcoin mining to AI cloud services, the importance of financial stability for institutional partnerships, and the company's promising future in the tech landscape. Insights into Galaxy's strategic plays and evolving operations make for a fascinating listen!
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Galaxy's Threefold Business Model
- Galaxy's business breaks down into three main components: crypto balance sheet, crypto business lines, and data center business.
- The $3.3 billion balance sheet supports liquidity, venture investments, and expansion of crypto and data center operations.
Balance Sheet Fuels Data Centers
- Galaxy's strong balance sheet is a key advantage compared to other Bitcoin miners, enabling capital-intensive data center expansion.
- Their approach of funding build-outs themselves offers better deal economics than competitors reliant on external financing.
Galaxy vs Bitcoin Miner Profits
- Bitcoin mining has been historically unprofitable with heavy dilution, unlike Galaxy's profitable crypto operating business.
- Galaxy avoided reckless issuance, even buying back stock during downturns, showing financial discipline.