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  5. GLXY: These two seem to be in the same "space". [Galaxy Digital Holdings Ltd. ordinary shares]
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Q: These two seem to be in the same "space". I'm not sure if they are competitors. I'm also trying to better understand this crypto market. Both appear to have potential and I understand that they are risky and I assume they both will move with the price of bitcoin.
I would like to have a small position. Do you recomend one over the other or a small position in each. Thanks John
Asked by John on March 18, 2025
5i Research Answer:

WNDR operates across two main segments: trading and payments. It has a few crypto exchanges that it operates (Bitbuy, Coinsquare, CoinSmart), which generate the majority of its revenues. It also operates Smart Pay (a payment platform for crypto transactions), Tetra Trust (custodial service), and WonderFi Labs (investing in DeFi projects). Its fundamentals are interesting, where it trades close to book value, it is not quite cash flow positive, but has been making improvements. Its fundamentals will fluctuate with the broader markets.  

GLXY operates across a few main segments: global markets (trading, lending, derivatives), asset management (venture investing, passive ETFs, etc.), digital infrastructure (data centres for blockchain and AI). GLXY also has strong fundamentals, and we feel it has a much more diverse set of operations, particularly with its foray into AI revenues. 

Largely, WNDR benefits from the 'retail' investor in crypto, whereas GLXY mostly caters to the institutional investor and global hedge funds. 

WNDR has a $132M market cap and GLXY has a market cap of around $2B. We would give GLXY the edge here, given its strong management team (CEO is Michael Novogratz), long-term potential, and larger size.