Maxim Group initiates coverage on Galaxy Digital stock with Buy rating

Investing.com - Maxim Group initiated coverage on Galaxy Digital (TSX:GLXY) (NASDAQ:GLXY) with a Buy rating and a $40.00 price target on Thursday. The stock, which has delivered an impressive 141% return over the past year according to InvestingPro data, currently trades at $28.90.

The firm cited Galaxy Digital’s diverse institutional offerings in the digital asset industry and its recent strategic pivot from bitcoin mining to hosting artificial intelligence (AI) datacenters.

Maxim highlighted the company’s March 2025 contract with CoreWeave Inc. to host an AI datacenter, which is expected to provide steady revenue and reduce exposure to digital asset volatility.

The research firm projects significant growth for Galaxy Digital, forecasting adjusted gross profit to increase 88% year-over-year in 2026 and 78% in 2027, driven by CoreWeave’s contracted lease payments and strengthening institutional demand for digital assets. Get deeper insights into Galaxy Digital’s growth potential with InvestingPro, which offers 16 additional investment tips and comprehensive financial analysis.

Maxim also noted Galaxy Digital’s strong financial position with approximately $1 billion in cash and net stablecoins, plus $900 million in digital assets as of March 31, 2025, and pointed to potential tailwinds from recent regulatory developments, including the GENIUS Act signed into law on July 18. The company’s next earnings report is scheduled for August 13, which could provide further clarity on its strategic initiatives.

In other recent news, Galaxy Digital Inc. has made significant strides in its operations. The company executed a massive bitcoin transaction valued at over $9 billion for an early investor, marking one of the largest in cryptocurrency history. This transaction was part of the investor’s estate planning strategy. Additionally, Galaxy Digital expanded its digital asset custody platform, GK8, to include the Solana blockchain, enabling institutional clients to securely access Solana-based decentralized finance applications.

In corporate governance updates, Doug Deason has been appointed to the board of directors, increasing the board’s size to seven members. Deason will also serve on the Nominating and Corporate Governance Committee. Meanwhile, Goldman Sachs initiated coverage of Galaxy Digital with a Neutral rating, highlighting the company’s transition from a digital assets merchant bank to a provider of AI data center infrastructure. These developments reflect Galaxy Digital’s evolving business landscape and strategic initiatives.

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