Shares of Galaxy Digital Inc. (NASDAQ:GLXY) are trading higher on Tuesday. Here’s a look at what’s fueling the momentum.
- Galaxy Digital stock is charging ahead with explosive momentum. What’s behind GLXY gains?
What To Know: Equity analysts at Citizens Bank released a positive note on Galaxy Digital, initiating the stock with an outperform rating and setting a sky-high target price of $60.
Citizens highlighted the company’s dual exposure to digital asset institutionalization and AI-driven infrastructure, which analyst Devin Ryan called “secular megatrends.” Ryan said Galaxy Digital’s diversification across trading, asset management, custody, staking, treasury services and hyperscale data centers creates a multi-engine growth model for the company.
The analyst noted that Galaxy Digital has already adapted infrastructure to align with recent advancements in cryptocurrency regulation, including the GENIUS Act in the U.S. and the MiCA rollout in the EU, giving it a head start on compliance in areas like registered investment advisors, broker-dealers and multi-jurisdiction licenses.
Recent performance buoys the analysts’ optimism. Galaxy’s Global Markets segment, which offers derivatives, structured products, financing and multi-asset collateral management, reached all-time highs in the third quarter with a gross profit of $318 million. Citizens is also impressed by the company’s assets under management, which reached roughly $9 billion with staking assets worth $6.6 billion.
One of the growth engines the analysts pointed out is the expansion of Galaxy Digital’s Helios data center in Texas. Developed with AI infrastructure company CoreWeave. The data center has 800 MW of fully committed power and plans to expand to 3.5 GW after Galaxy Digital secured $1.4B in project financing to fund phase one, with deliveries slated to begin in the first half of next year.
“Our valuation is based on a sum-of-the-parts framework, attributing ~$25 per share to the Digital Asset segment and $35+ to the Data Center business,” the analyst said in the note.
“We believe Galaxy is positioned to capture outsized share of two of the most transformative markets of the next decade.”
GLXY Price Action: Galaxy Digital shares were up 10.46%, trading at $28.82 at the time of publication on Tuesday, according to Benzinga Pro.
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