Galaxy Digital selloff misses bigger catalysts in AI, regulatory shift as Benchmark still sees 170% upside
Benchmark analysts maintain a buy rating on Galaxy Digital, citing significant upside potential from AI data centers and crypto regulation despite recent losses.Summary
Benchmark analysts argue that the recent selloff in Galaxy Digital shares following a $482 million fourth-quarter loss overlooks major long-term catalysts, reiterating a "buy" rating with a $57 price target, implying 170% upside.
Key catalysts include potential passage of U.S. crypto market structure legislation, which CEO Mike Novogratz estimates has an 80% chance of passing soon, potentially unlocking greater institutional capital for which Galaxy is positioned. Furthermore, Benchmark highlights the underappreciated value of Galaxy's Helios data center campus in Texas, which has 1.6 GW of approved power capacity and is set to generate revenue via a lease with AI cloud provider CoreWeave.
The analysts attribute the recent quarterly loss primarily to declining crypto prices rather than operational weakness, noting that the lending unit continued to grow its loan book to $1.8 billion. With $2.6 billion in cash and stablecoins, Galaxy is deemed well-funded to pursue both crypto infrastructure and AI expansion.
(Source：The Block)