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Galaxy Digital Holdings: Strategic Reorganization and Nasdaq Listing Drive Positive Outlook Despite Temporary Q1 Profit Dip

Galaxy Digital Holdings: Strategic Reorganization and Nasdaq Listing Drive Positive Outlook Despite Temporary Q1 Profit Dip

Analyst Joseph Vafi of Canaccord Genuity maintained a Buy rating on Galaxy Digital Holdings (BRPHFResearch Report), retaining the price target of C$41.00.

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Joseph Vafi has given his Buy rating due to a combination of factors including Galaxy Digital Holdings’ strategic corporate reorganization and its upcoming listing on Nasdaq. The transition from the Cayman Islands to Delaware and the dual listing on Nasdaq and TSX are expected to enhance the company’s visibility and accessibility to a broader investor base.
Furthermore, while there is a temporary reduction in Q1 profit estimates due to unrealized losses from crypto asset holdings, this adjustment is largely an accounting formality and does not reflect a change in the company’s fundamental outlook. The strong recovery in crypto spot prices observed in Q2 suggests potential for significant unrealized gains, reinforcing the positive outlook for the company’s financial performance.

In another report released yesterday, KBW also maintained a Buy rating on the stock with a C$36.00 price target.

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