Crypto Mainstream Adoption Has Increased in Recent Months, Canaccord Says

The Galaxy Digital price target was raised from C$17 to C$23 at Canaccord.

The crypto financial services firm is well positioned to benefit from the continued adoption of digital assets, the report said.

The company’s mining assets could gain value if the AI ​​trend continues, the broker said.

Galaxy Digital (GLXY) is well positioned given its strong corporate structure to benefit from the continued structural adoption of digital assets, broker Canaccord Genuity said in a research report on Monday that raised its price target for the crypto financial services firm.

Canaccord raised its Galaxy price target from C$17 to C$23 while maintaining a buy rating on the stock. Shares closed at C$16.25 on Friday.

“With digital assets trending near all-time highs, some increased congestion on the regulatory front, good business practices by GLXY and some re-rating of sum-of-the-parts (SOTP) valuation, we are increasing the price target,” analysts led by Joseph Vafi wrote.

The report noted the unexpected initial approval of eight ether spot exchange-traded funds by the Securities and Exchange Commission (SEC) last month, noting that we have seen a “slow but steady transition towards mainstream acceptance of digital assets” in recent months.

Canaccord said the crypto financial services firm is well established in the ETF market by partnering with leading players such as Inveco, DWS and Itau.

Other headwinds include Robinhood’s recent deal to acquire Bitstamp, with Galaxy serving as the crypto exchange’s exclusive financial advisor, underscoring the firm’s investment banking capabilities, the authors wrote. Galaxy also owns the Helios mining facility in West Texas; This facility could be appreciated if energy-hungry AI companies continue to seek deals with bitcoin miners, such as the recent approach of Core Scientific (CORZ).

Read more: Galaxy Digital Has Strong Momentum in All Business Lines: Canaccord