Rosenblatt says HPC selloff creates buying opportunity in Galaxy Digital and Cipher Digital

1 month ago 14

William Foxley

Tue, July 7, 2026 astatine 8:46 AM CDT 2 min read

Rosenblatt Securities expert Chris Brendler thinks the caller selloff successful HPC-linked stocks was overdone, nodding his caput to 2 erstwhile Bitcoin miners making the pivot into AI Galaxy Digital (NASDAQ: GLXY) and Cipher Digital (NASDAQ: CIFR).

GLXY had fallen 22% implicit the anterior 2 weeks portion CIFR dropped 13%, astatine clip of the notes work connected July 2. As of property time, GLXY and CIFR are down connected the day, trading hands astatine $25.14 and $20.98 respectively.

The selloff intensified aft Bloomberg reported connected July 1 that Meta Platforms was gathering a unreality cognition aimed astatine extracurricular customers, with AI compute capableness and models portion of the plan. The determination raised interest that Meta could go a rival successful the neocloud stack alongside its relation arsenic a customer. CoreWeave-linked names bore the brunt of the selling, with CoreWeave itself falling astir 14% that day.

Brendler dismissed the fear. "We presumption this absorption arsenic overdone," helium wrote, adding that the steadfast does not presumption the Meta quality "as a antagonistic request signal." He pointed to Rosenblatt workfellow John McPeake's appraisal that the Meta communicative appeared company-specific, driven by the societal media giant's request to warrant ample superior expenditure, with nary denotation of a displacement successful contracted demand.

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Brendler singled retired GLXY due to the fact that its nonstop vulnerability to CoreWeave made it susceptible to read-throughs from the Meta headline. Galaxy's Helios information halfway field expanded its CoreWeave concern successful 2025 by an further 133 megawatts of captious IT load, leaving CoreWeave committed to the site's full 800-megawatt gross-power approval. That attraction explains wherefore hyperscaler headlines present determination the banal astir arsenic overmuch arsenic bitcoin-specific catalysts.

On CIFR, Brendler said the 13% pullback widened a "persistent valuation disparity" helium had already identified successful the name. The enactment framed the diminution arsenic a cheaper introduction into the miner-to-HPC pivot taxable and said it did not awesome deteriorating fundamentals. CIFR shares were trading astir $22.84 arsenic of the note's publication.

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Rosenblatt's disclosures authorities that the steadfast expects to person concern banking gross from Galaxy Digital successful the adjacent 3 months and co-managed a nationalist offering for GLXY successful the past 12 months. Rosenblatt has nary concern banking narration with Cipher Digital.

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