Galaxy set for more gains after 25 percent rise in Trump win: analyst
Galaxy Digital stock is set for further gains after Donald Trump's victory on Nov. 5, which set the stage for more institutional cryptocurrency adoption in the US presidential election, according to an analyst report shared with Cointelegraph on Nov. 8.
Galaxy shares surged 25 percent on Nov. 5 after Republican candidate Trump's election victory led to the crypto trading firm's biggest trading day of the year.
The price jump was “a response to US President-elect Trump's election as part of his pro-crypto stance on the campaign trail, which will increase institutional adoption of crypto,” according to a report by Benchmark. Fintech analyst Mark Palmer.
Palmer raised his price target on GLXY to 29 CAD from his previous estimate of 19 CAD, he told Cointelegraph in an email. It currently sells for around 23 CAD.
Source: Benchmark
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Trump's win supports Galaxy's ongoing bid to raise GLXY to the Nasdaq exchange, the report said.
Galaxy's push for a Nasdaq listing “continues though. [Security and Exchange Commission’s] A less-than-honest approach to his crypto stance; [but] It's more likely to happen under the incoming Trump administration,” Palmer said.
Galaxy is pursuing plans to expand and monetize high-voltage capacity at its flagship Helios data center in Dickens County, Texas, Palmer said in an August research note.
Palmer said Helios should benefit from “anticipated demand for massive amounts of power from artificial intelligence (AI) and high-performance computing (HPC) projects.”
U.S. crypto stocks have made huge gains — often in the double digits — after Trump's landslide victory, raising hopes of pro-crypto policy reforms in the United States.
On Election Day, Galaxy's “franchise was doing the whole hog — trading with partners in the U.S. and overseas, providing a lending desk,” Galaxy's CEO Michael Novogratz told Bloomberg.
“It really felt like a vindication of everything we've been working toward,” Novogratz said.
During the campaign, Trump promised to make the US “the crypto capital of the planet and the world's bitcoin superpower.”
So far, his policy proposals include creating a strategic Bitcoin reserve, establishing a Crypto Presidential Advisory Council, and banning the Federal Reserve from issuing digital currency.
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