Feb 21 2024: Canaccord Genuity has commenced research coverage on Galaxy Digital (BRPHF), issuing it a Buy rating and setting a one-year price target of C$17, suggesting a potential upside of more than 28% from the recent closing price.
With exposure in both its balance sheet and operations to the cryptocurrency ecosystem, Galaxy Digital (GLXY) is considered by Canaccord analysts as offering one of the most diversified investment opportunities in the digital asset sector.
According to analysts at Canaccord, Galaxy’s institutional trading division is poised to capture market share, benefiting from several positive catalysts. Notably, the imminent widespread launch of Galaxy One, its unique crypto prime brokerage platform, is expected to be particularly advantageous. Furthermore, the anticipated approval of various spot BTC ETFs in the U.S. and the forthcoming Bitcoin halving are anticipated to drive spot prices higher, thereby enhancing trading volumes and volatility, consequently benefiting Galaxy’s trading business.
The analysts also highlighted the correlation between GLXY’s balance sheet and underlying cryptocurrency spot prices, which are adjusted quarterly. They anticipate Galaxy’s book value for Q4 to exhibit a notable increase compared to Q3, reflecting the influence of cryptocurrency spot price fluctuations.
Overall, Canaccord perceives Galaxy Digital as well positioned to capitalize on the expected growth in the digital assets landscape in 2024.