Novogratz Buys Galaxy Shares, Citing 'Massive Disconnect' Between Price and Value

Galaxy Digital (NASDAQ: $GLXY), the digital asset and AI data center company, saw its founder and CEO, Mike Novogratz, announce Thursday that he is buying more shares after the stock tumbled alongside the broader technology sector in a market selloff.

The announcement represents a rare show of insider confidence following a sharp decline in the company's shares. Galaxy stock has fallen approximately 41% over the past month, tracking weakness across the AI data center sector. Novogratz did not disclose how many shares he intends to purchase. Insiders are generally required to report stock transactions to the U.S. Securities and Exchange Commission within two business days.

In a post on X, Novogratz described what he sees as “a massive disconnect” between Galaxy's current share price and the company's underlying value. “That’s why I’m buying more stock, starting today,” he wrote, adding, “I’m betting on us, big time.”

Novogratz pointed to the growing adoption of blockchain-based financial services and surging demand for AI infrastructure as long-term growth drivers, describing both as “generational shifts that will play out across administrations and market cycles.”

He also addressed the political environment following the election. “The blue wave has weighed on companies like ours,” Novogratz wrote, cautioning investors not to “confuse politics with long-term fundamentals.”

Galaxy's data center operations are concentrated in Texas, where Democrat Gina Hinojosa won the gubernatorial race. Hinojosa has called for a pause on new data center approvals until the state establishes rules to protect residents from rising electricity and water costs.

Novogratz pointed to continued progress at Galaxy's Helios campus in Texas, where the company delivered its first phase on schedule and has secured long-term lease agreements covering 800 megawatts of capacity. He said Galaxy has spent years working with state legislators and local communities and intends to continue those efforts under the incoming administration.

“We share the same goals,” Novogratz wrote, referring to reliable power, water conservation and strong local communities.

Galaxy shares fell approximately 7% by Thursday's close, after trading down 4.6% earlier in the session. The decline came as the Nasdaq dropped roughly 5% and Bitcoin (CRYPTO: $BTC) slipped toward $75,000. Morgan Stanley (NYSE: $MS) has also indicated that it would reassess the outlook for Galaxy's Helios II expansion following the Texas election results.

The company has separately acknowledged that securing its next major Helios lease is taking longer than anticipated. During its third-quarter earnings call, Novogratz said Galaxy had held advanced discussions over a potential Helios II agreement but ultimately decided against proceeding under the terms being considered after market conditions shifted in late summer.

Discussions with prospective customers remain ongoing, he said, adding that Galaxy would not compromise on commercial terms simply to meet a target announcement date.

Shares of Galaxy Digital (NASDAQ: GLXY) are currently trading at $12.98, down from a 52-week high of $36.10.