Why Galaxy Digital Stock Is Surging On Monday?

Galaxy Digital Inc. (NASDAQ:GLXY) shares are ripping higher on Monday. The sudden breakout follows a massive institutional announcement alongside a broader relief rally across the digital asset market.

Galaxy is building what is expected to be the largest single-campus data center in America. The Nasdaq is up 1.99% while the S&P 500 has gained 0.77%.

Speaking on All Things Markets with Anthony Scaramucci, Galaxy Digital Founder and CEO Michael Novogratz said the company expects to have the entire 1.6 GW campus leased by July 4, or by the end of the summer at the latest.

A Landmark Wall Street Partnership

The primary catalyst emerged on Friday, when Morgan Stanley Wealth Management and Galaxy Digital announced a brand-new referral capability.

Under this arrangement, eligible clients can lend cryptocurrency directly to Galaxy. In return, they receive shares of spot crypto exchange-traded products (ETPs), including the Morgan Stanley Bitcoin Trust (MSBT).

Slashing Institutional Onboarding Bottlenecks

Traders are cheering the efficiency of Galaxy's new institutional model. Traditionally, onboarding timelines for these crypto-to-ETP transactions can exceed four weeks.

This joint initiative cuts onboarding times by as much as 75% in some cases, while Galaxy simultaneously lowered its lending transaction minimum from $25 million to $5 million for referred clients.

"Streamlined onboarding and lowered transaction minimums make it easier for clients to integrate digital assets alongside traditional investments," stated Zane Glauber, Global Head of Distribution at Galaxy, in the official announcement.

Crypto Rally Fuels Tailwinds

A sweeping market recovery is providing an extra boost for GLXY. The total crypto market cap gained 2.81% to reach $2.19 trillion. Bitcoin (CRYPTO: BTC) pushed up 2.58% to $63,859.96, while Ethereum (CRYPTO: ETH) gained 2.99% to trade at $1,687.15, compounding the bullish momentum for digital asset equities.

Bridging TradFi and DeFi

The move signals deeper institutional adoption by Wall Street heavyweights. "This referral arrangement represents a significant step forward in bridging traditional finance and decentralized finance," noted Alison Nest, Head of Investment Solutions Products at Morgan Stanley Wealth Management, highlighting the growing push to integrate digital assets directly into traditional portfolios.

Critical Levels To Watch for GLXY Stock

From a trend perspective, GLXY is still acting constructively on the intermediate timeframe: it's trading 13% above its 50-day SMA ($25.98) and 17.6% above its 100-day SMA ($24.97). The catch is that it's still 0.2% below the 20-day SMA ($29.42).

The moving-average stack is mixed: the 20-day SMA is above the 50-day SMA (bullish), but the 50-day SMA remains below the 200-day SMA (bearish longer-term backdrop).

GLXY Price Action: Galaxy Digital shares were up 17.88% at $29.63 at the time of publication on Monday, according to Benzinga Pro data.

Image Via Shutterstock