GLXY Stock Rises 8% as Galaxy Digital Launches Crypto-Backed Credit Line for BTC, ETH, SOL

Key insights:

• GalaxyOne lets eligible clients borrow against BTC, ETH, and SOL through one revolving credit line.
• The credit line carries an 8.99% APR, no origination fee, and a starting loan-to-value ratio of 50%.
• Galaxy’s Texas data center power pipeline now totals about 5.73 GW across Helios and other planned sites.

GLXY stock rallied Tuesday as investors assessed Galaxy Digital’s new crypto-backed lending product and its expanding artificial-intelligence infrastructure business. Shares closed Aug. 25 at $24.79, gaining 8.54% after reaching an intraday high of $25.15.

The move coincided with Galaxy’s launch of a Crypto Portfolio Line of Credit through GalaxyOne. The product allows eligible customers to borrow against Bitcoin, Ethereum, and Solana through one revolving credit facility without selling their crypto holdings.

GalaxyOne customers can combine eligible BTC, ETH, and SOL holdings as collateral for a single line of credit. The platform also accepts staked SOL, allowing customers to maintain applicable staking rewards while borrowing against those assets.

Galaxy said pledged collateral will not be rehypothecated while it supports an active credit line. That means the company will not lend or reuse those assets elsewhere while they remain pledged as collateral.

Customers can keep borrowed funds inside GalaxyOne or withdraw proceeds in U.S. dollars or USDC. Galaxy said funding is normally available immediately after a credit line opens, although some transactions can require one or two business days.

The product launches with an 8.99% annual percentage rate and no origination fee. It uses an open-term revolving structure with interest-only monthly payments.

However, the 8.99% APR is variable rather than fixed. Galaxy said it can change the rate with 30 days’ notice, while rates in selected states may be lower.

GalaxyOne customers can combine eligible BTC, ETH, and SOL holdings as collateral for one revolving credit line. Staked SOL can also support borrowing without requiring customers to unstake their tokens before opening the line.

According to Galaxy, the pledged assets will not be rehypothecated while they are being used as collateral. Customers, as a result, can receive proceeds through the GalaxyOne platform or withdraw funds in US dollars or USDC.

The product carries an 8.99% annual percentage rate and does not charge an origination fee at drawdown. It uses an open-term structure with interest-only monthly payments, according to Galaxy.

The initial loan-to-value ratio is 50%, while collateral values are monitored continuously after a line becomes active. GalaxyOne said customers receive notifications before collateral-related action becomes necessary.

The lending product is designed for customers seeking cash while keeping exposure to their digital asset holdings. Borrowers may use the funds for taxes, property purchases, home projects, investments, or other expenses.

Galaxy said staked SOL can continue earning applicable staking rewards while pledged as collateral. That structure allows customers to maintain staking exposure while accessing liquidity through the same account.

“We’re excited to bring a competitive crypto-backed borrowing product to market via our growing retail platform,” said managing director of GalaxyOne Zac Prince.

He said Galaxy’s institutional infrastructure allows the company to offer security, competitive pricing, and greater flexibility. The credit line is available to eligible customers across 40 US states.

Galaxy Digital is also expanding its Texas data center portfolio as demand grows for artificial intelligence and high-performance computing capacity. The company disclosed several additional sites during its August 5 earnings call.

Its planned power portfolio totals about 5,730 megawatts across Helios, Merlin, Caspian, and Selene locations. Helios I represents 800 MW, while Helios II adds another 830 MW of potential capacity.

Galaxy has also outlined 1,000 MW each for Helios III and Helios IV. Caspian carries 700 MW, while Selene accounts for approximately 900 MW.

Merlin I currently represents about 76 MW of potential capacity, while Merlin II could add another 426 MW. Galaxy said the wider Merlin location could ultimately support about 500 MW.

However, Morgan Stanley has said new ERCOT review procedures should not change the commercial schedule for Phase II of Helios I. That phase is under contract with CoreWeave and has a planned commercial date in the second quarter of 2027. Despite this, Morgan Stanley has maintained an Overweight rating on Galaxy Digital and a $37 price target for GLXY stock.

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