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On Tuesday, Keefe, Bruyette & Woods maintained an Outperform rating on Galaxy Digital Holdings Ltd (TSX:GLXY:CA) (OTC: BRPHF) but reduced the price target from Cdn$42.00 to Cdn$36.00. The firm’s analyst cited a combination of recent macroeconomic challenges and delays in the listing process as factors contributing to a recent decline in the company’s stock price. Despite these issues, the analyst sees them as temporary setbacks and believes the company is well-positioned for growth.
Galaxy Digital, with its broad exposure to various digital asset ecosystems and a business model focused on institutional clients, is expected to benefit from the new executive orders by a crypto-friendly administration. These orders are aimed at creating a comprehensive framework that would improve operating conditions for companies in the digital asset space. With a market capitalization of $3.63 billion and a healthy current ratio of 2.68, the company appears well-capitalized to pursue growth opportunities.
The reduction in the price target to C$36.00 from the previous C$42.00 is influenced by a conservative guidance for the first quarter of 2025. Additionally, the valuation now incorporates the expected value from the company’s initial Artificial Intelligence/High-Performance Computing (AI/HPC) lease agreement.
Keefe, Bruyette & Woods also sees potential for Galaxy Digital’s stock to rise further if the company can secure hosting contracts that fully utilize the approved capacity at its Helios facility, and possibly even beyond that capacity. The analyst’s outlook suggests confidence in Galaxy Digital’s ability to capitalize on the evolving regulatory landscape and its current initiatives.
In other recent news, Galaxy Digital Holdings Ltd has made significant strides with a 15-year lease agreement with AI hyperscaler CoreWeave. This agreement will provide CoreWeave with 133 megawatts of data center capacity at Galaxy Digital’s Helios campus in West Texas, expected to generate approximately $4.5 billion in revenue over the term. Benchmark analysts maintained a Buy rating for Galaxy Digital, citing confidence in this strategic development. Additionally, Cantor Fitzgerald initiated coverage on Galaxy Digital with an Overweight rating and a price target of Cdn$44.00, highlighting the company’s diversified approach across the digital asset ecosystem. Piper Sandler also maintained an Overweight rating, naming Galaxy Digital as its top pick for 2025, projecting a 62% upside potential. The firm’s analysts pointed to potential collaborations and a possible Nasdaq uplisting as key factors driving this optimism. Meanwhile, BitGo announced plans to go public with an IPO in the second quarter of 2025, valued at $1.75 billion. This move follows a Series C funding round where BitGo raised $100 million, marking its first funding since 2017.
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