Broker Canaccord Genuity raised its price objective for cryptocurrency financial services company Galaxy Digital (GLXY) on Monday, citing the company’s significant institutional exposure as a reason for its favourable position to profit from the structural uptake of digital assets going forward.
Canaccord kept its buy recommendation on Galaxy shares but increased its price objective to C$23 from C$17. The stock ended the day on Friday at C$16.25. “We are increasing our price target due to the fact that digital assets are close to all-time highs, there is a slight regulatory bottleneck, GLXY is doing good business, and some of the components are valued higher on a sum-of-the-parts (SOTP) basis,” analysts under Joseph Vafi stated.
The research noted the surprising initial approval of eight ether spot exchange-traded funds last month by the Securities and Exchange Commission (SEC) and stated that we are seeing a “slow but steady shift towards mainstream adoption of digital assets” in recent months. With partnerships with major businesses like Inveco, DWS, and Itau, the crypto financial services company has a strong presence in the ETF market, according to Canaccord.
The writers said that one of the other positive developments is Robinhood’s recent acquisition of Bitstamp, wherein Galaxy served as the cryptocurrency exchange’s only financial advisor. This acquisition highlights the company’s strengths in investment banking.
In addition, Galaxy owns the west Texas-based Helios mining complex, which may see growth if energy-hungry artificial intelligence firms chase agreements with bitcoin miners like the recently announced Core Scientific (CORZ) strategy.