Benchmark is optimistic about Galaxy Digital, expecting the stock price to increase by 170%

PANews February 5 News, according to Benchmark analyst’s latest report, despite Galaxy Digital’s stock plummeting due to a $482 million loss in the fourth quarter, the market may be overlooking its long-term potential in AI data centers and U.S. cryptocurrency regulation legislation. Galaxy’s current stock price is approximately $21, and Benchmark maintains its “Buy” rating with a target price of $57, indicating a potential 170% upside. Galaxy CEO Mike Novogratz stated during the earnings call that there is a 75%-80% probability of passage for U.S. crypto market structure legislation, which could attract more institutional capital into the market. Additionally, the company plans to announce more institutional partnerships and infrastructure expansion plans in the coming quarters, including the expansion of on-chain lending markets. Benchmark also mentioned that Galaxy’s Helios data center in Texas is an undervalued asset, with over 1.6 gigawatts of approved power capacity, and plans to start generating revenue this year through leasing agreements with AI cloud service provider CoreWeave. Analysts believe that the valuation of just the Helios data center could exceed Galaxy’s current market capitalization. Despite a decline in performance in the fourth quarter, Galaxy’s lending business continues to grow, with total loans reaching $1.8 billion. The company also holds $2.6 billion in cash and stablecoin reserves, providing ample funding for its expansion into crypto infrastructure and AI fields.