Key Insights:
- Crypto stocks are outperforming the market downturn by diversifying beyond digital assets, with Galaxy Digital gaining traction from its AI data center business and Robinhood expanding into broader fintech products.
- Both companies are supporting their stocks through large share buybacks, signaling confidence and rewarding shareholders despite the crypto slump.
- Robinhood is reducing its dependence on crypto trading, offsetting weaker crypto revenue with rapid growth in prediction markets, equities, options, and other financial products.
Crypto stocks have weathered the recent market downturn better than many digital assets, as investors increasingly favor companies with diversified business models over direct cryptocurrency exposure.
Bitcoin has fallen sharply from its October 2025 peak, while many altcoins have posted even steeper losses. Yet shares of Galaxy Digital and Robinhood have remained relatively resilient, supported by new business initiatives and aggressive capital-return programs.
Rather than relying solely on crypto trading activity, both companies have expanded into areas that can generate revenue regardless of market cycles.
Crypto Stocks Benefit From Galaxy’s AI Expansion
Galaxy Digital has spent the past year transforming itself from a crypto-focused financial firm into a broader infrastructure business.
The company reported first-quarter revenue growth despite difficult market conditions and continued strengthening its balance sheet. Management has emphasized building businesses that are less dependent on cryptocurrency prices and trading activity.
Chief Executive Mike Novogratz has repeatedly highlighted Galaxy’s financial flexibility. In February, the board approved a $200 million share repurchase program, a move that helped boost investor confidence. During the first quarter alone, Galaxy spent $65 million buying back 3.2 million shares to offset dilution.
Shares climbed from roughly $20 in early February to around $33.50 by mid-June.
The company’s biggest growth initiative sits outside crypto markets altogether. In April, Galaxy delivered the first operational data hall at its Helios campus in Texas to artificial intelligence infrastructure provider CoreWeave, activating revenue under a long-term lease agreement.
Galaxy expects the initial 133-megawatt facility to be fully operational by the end of the second quarter. At the same time, the company continues expanding the site after securing approval for an additional 830 megawatts from the Electric Reliability Council of Texas (ERCOT).
Management believes Helios could eventually reach 3.5 gigawatts of capacity, supporting more than $1 billion in annual revenue. That transition would give Galaxy a substantial source of recurring cash flow that is largely independent of crypto market volatility.
The strategy has attracted Wall Street support. Most analysts covering the stock maintain bullish ratings, with consensus price targets remaining above current trading levels.
Why Crypto Stocks Are Holding Up Better
Net loss of $216M (vs. $482M loss in Q4); total equity of $2.8B; cash of $2.6B; delivered the first 133 MW hall at Helios on schedule; share repurchase of $65M (3.2M shares) in Q1.
Analysts remain broadly bullish: 12 Wall Street analysts rate GLXY, with 10 “Buy” and 2 “Hold” (average 12-month price target $39.50, +18% above today’s price).
But Robinhood offset that with explosive growth elsewhere. Event-based “prediction market” contracts boomed: other transaction revenue (mostly these event bets) jumped 320% to $147 million, as users traded a record 8.8 billion prediction-market contracts.
The company’s analysis emphasizes that customers are engaging broadly with equities, options, and derivatives but not just crypto.
CEO Vlad Tenev noted on the call that “we want to get away from talking about the price of bitcoin and build great products; they’ll be there throughout the cycle.”
In product news, Robinhood launched new AI-driven trading tools and even a “Trump Accounts” app for children’s savings, underscoring its expanding fintech footprint.
Robinhood also aggressively returned capital. Q1 share repurchases were $250 million (3.1 million shares at ~$81 each).
The board extended its authorization to buy back $1.5 billion over a period of approximately three years. On June 16, Robinhood trended after making an announcement to slash its workforce by approximately 10% (roughly 290 employees).
Management said the move was proactive. Investors liked it: HOOD stock jumped ~5% on the news.
Importantly, Robinhood’s trading volume has been surging: by mid-June, average daily volume in equities, options, and prediction markets hit all-time highs.
Key Robinhood metrics (Q1 2026 and recent)
Q1 revenue was $1.07B (+15% YoY); diluted EPS was $0.38 (+3%). Crypto trading revenue was $134M (-47%), offset by a 320% surge in prediction-market revenue.
Funded customers: 27.4M (+6%); platform assets: $307B (+39%). Gold subscribers: 4.3M (+36%), ARPU $157. Q1 share buyback: $250M, board-authorized repurchases: $1.5B.
June 2026 average daily volumes in equities, options, and event contracts reached record highs. Shares recently bounced on news, with HOOD trading around $96 as of June 16, 2026.
Both firms have also used share repurchases to support shareholder returns during a difficult period for digital assets.
While many crypto stocks continue to move alongside Bitcoin, Galaxy and Robinhood have demonstrated that diversification can provide a measure of protection when cryptocurrency markets weaken.
As investors look for exposure to the digital asset industry without taking direct token risk, those broader business models may continue attracting attention.
