This Investor Is Betting $67 Million on Galaxy Digital as Bitcoin Pullback Tests Crypto Rally

New York-based Seven Grand Managers disclosed a purchase of 750,000 additional Galaxy Digital (NASDAQ:GLXY) shares in the third quarter, boosting its position by approximately $40.2 million, according to an SEC filing on Wednesday.

What Happened

Seven Grand Managers increased its stake in Galaxy Digital (NASDAQ:GLXY) by 750,000 shares during the third quarter, bringing its total holding to 2 million shares valued at $67.6 million as of September 30. The change, totaling an estimated $40.2 million based on quarterly average pricing, was disclosed in an SEC filing on Wednesday.

What Else to Know

Galaxy Digital now accounts for 5.5% of 13F AUM.

Top holdings after the filing:

• NASDAQ: GLXY: $67.6 million (5.5% of AUM)
• NASDAQ: TMUS: $47.9 million (3.9% of AUM)
• NYSE: MCK: $46.4 million (3.8% of AUM)
• NASDAQ: KTOS: $45.7 million (3.7% of AUM)
• NASDAQ: NDAQ: $44.2 million (3.6% of AUM)

As of Thursday, Galaxy Digital shares were priced at $29.81, up 64% over the past year, which is well above the S&P 500's 14% gain in the same period.

Company Overview

Company Snapshot

Galaxy Digital operates as a diversified financial services firm focused on digital assets, blockchain technology, and related infrastructure. The company leverages a multi-segment strategy, combining trading, asset management, and technology-driven solutions to address the evolving needs of institutional and corporate clients. It generates revenue through trading and financing activities, asset management fees, and technology solutions for the digital asset ecosystem.

Foolish Take

Seven Grand Managers’ $40 million increase in Galaxy Digital comes amid a rash of renewed institutional confidence in crypto-linked equities, and the timing suggests Seven Grand sought to capitalize on Galaxy’s strong year-to-date rally. Shares are up 64% over the past 12 months—even as they’ve fallen about 30% since October, mirroring Bitcoin’s own sharp pullback after its mid-year surge.

Galaxy’s third-quarter earnings release highlighted $505 million in net income, total equity of $3.2 billion, and record quarterly digital asset trading volumes. The company also reported total assets on the platform reached an all-time high of about $17 billion at the end of the quarter.

For context, Seven Grand’s other top holdings—T-Mobile, McKesson, and Nasdaq Inc.—reflect a blend of defensives and innovation-driven plays, suggesting the Galaxy addition is part of a diversified strategy balancing high-growth exposure with stable cash generators. For long-term investors, the move reinforces how traditional asset managers are gradually reentering the digital asset ecosystem, though volatility and regulatory uncertainty remain key risks.

Glossary

13F: A quarterly SEC filing by institutional investment managers disclosing their equity holdings.
AUM (Assets Under Management): The total market value of investments managed on behalf of clients by a fund or firm.
Stake: The amount of ownership or shares an investor or fund holds in a company.
Alpha: A measure of an investment's performance compared to a benchmark, indicating value added or lost.
Structured products: Pre-packaged investment strategies based on derivatives and other assets, tailored to specific risk-return profiles.
Derivatives: Financial contracts whose value is derived from the performance of underlying assets, such as stocks or commodities.
Digital asset: An asset that exists in digital form, such as cryptocurrencies or tokens, and is stored or traded electronically.
Validator services: Services that help verify and secure transactions on blockchain networks, often earning rewards for doing so.
Institutional investors: Organizations such as pension funds, insurance companies, or asset managers that invest large sums of money.
High-net-worth individuals: People with significant investable assets, typically above $1 million, excluding their primary residence.
Multi-segment strategy: A business approach involving multiple lines of service or product offerings to diversify revenue sources.
TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends McKesson, Nasdaq, and T-Mobile US. The Motley Fool has a disclosure policy.