Galaxy Digital’s Strategic Expansion and Strong Financial Performance Support Buy Rating

Benchmark Co. analyst Mark Palmer maintained a Buy rating on Galaxy Digital today and set a price target of $40.00.

Mark Palmer has given his Buy rating due to a combination of factors that highlight Galaxy Digital’s promising future. The company’s recent quarterly report, its first since relocating to the U.S. and listing on Nasdaq, marks a significant transition into a hybrid digital asset and AI data center platform. Despite a temporary dip in stock price, the report indicates strong momentum in their trading business, with July being a record month, and a growing pipeline of institutional investors eager to join their platform.
Furthermore, the company’s financial performance was bolstered by a rise in digital asset prices, resulting in a substantial increase in adjusted EBITDA. Galaxy Digital’s strategic acquisition of land to expand its Helios data center underscores its ambition to become a key player in AI and HPC infrastructure. This expansion, coupled with a significant contract with CoreWeave, positions the company to generate substantial revenue from its data center operations. These factors, combined with the potential regulatory clarity from the CLARITY Act, support the Buy rating and an increased price target of $40.

In another report released today, Rosenblatt Securities also reiterated a Buy rating on the stock with a $35.00 price target.