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Investing.com - Piper Sandler raised its price target on Galaxy Digital (TSX:GLXY) (NASDAQ:GLXY) to $36.00 from $34.00 on Monday, while maintaining an Overweight rating on the cryptocurrency financial services firm. The stock has shown remarkable momentum, surging 26.57% in the past week and trading near its 52-week high of $28.17.
The research firm described Galaxy Digital as a "two-headed monster" positioned to benefit from accelerating institutional adoption of cryptocurrency, as well as growing demand for power from AI and high-performance computing companies.
Piper Sandler’s sum-of-parts analysis values Galaxy’s core crypto business at approximately $14 per share, which includes about $1.9 billion of crypto assets.
The firm values Galaxy’s estimated 800 MW deal with Coreweave at approximately $12 per share, and the incremental 1.7 GW of power pending ERCOT approval at Helios at approximately $16 per share, assuming similar economics to the CoreWeave deal.
This analysis results in a hypothetical all-in valuation of approximately $43 per share, representing about 59% upside from Friday’s closing price, according to Piper Sandler.
In other recent news, K Wave Media has announced a strategic partnership with Galaxy Digital to enhance its bitcoin treasury strategy. This collaboration will see Galaxy Digital serving as an asset manager and strategic advisor, as well as making an undisclosed investment in K Wave Media. The company has already acquired 88 bitcoin and has access to nearly $1 billion in institutional capital to support its initiatives. K Wave Media is pursuing an aggressive bitcoin treasury strategy and is exploring additional partnerships and acquisitions to expand its reach.
In another development, Galaxy Asset Management, an affiliate of Galaxy Digital, successfully closed its Galaxy Ventures Fund I with over $175 million in capital commitments, surpassing its initial target of $150 million. The fund aims to invest in early-stage companies focused on blockchain infrastructure and applications. The portfolio already includes startups like 1Money and Arch Lending. Galaxy Ventures has backed more than 120 companies to date, highlighting its strong presence in the crypto venture market.
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