Galaxy Digital’s stock is set for bigger gains after Donald Trump’s Nov. 5 win in the United States presidential election sets the stage for more institutional cryptocurrency adoption, according to a Nov. 8 analyst report shared with Cointelegraph.
Galaxy shares rose 25% on Nov. 5 after Republican candidate Trump’s election win sparked the crypto trading firm’s biggest trading day of the year.
The price jump was “in response to the election of U.S. President-Elect Trump, who had made a pro-crypto stance part of his campaign platform, with the potential for increased institutional adoption of crypto,” according to the report, written by Benchmark fintech analyst Mark Palmer.
Palmer raised his price target for GLXY to 29 CAD per share from his previous estimate of 19 CAD, he told Cointelegraph in an email. It currently trades at around 23 CAD per share.
Source: Benchmark
Related: The influence of the 2024 US elections on the crypto market: Report
Trump’s win also favors Galaxy’s ongoing bid to uplist its stock, GLXY, to the Nasdaq exchange, according to the report.
Galaxy’s push for a Nasdaq listing “has continued despite the [Securities and Exchange Commission’s] less-than-enthusiastic approach to the crypto stance, [but] will be more likely to occur under the incoming Trump Administration,” Palmer said.
Galaxy stands to gain from plans to expand and monetize the high-voltage power capacity at its flagship Helios data center in Dickens County, Texas,” Palmer said in an August research note.
Palmer said Helios stands to benefit from “the anticipated demand from artificial intelligence and high-performance computing (HPC) projects for enormous amounts of power.”
US crypto stocks saw massive gains — often in the double digits — after Trump’s sweeping win stoked hopes for a pro-crypto US policy overhaul.
On election day, Galaxy’s “franchise was operating at full boar — trading with counterparties both in the US and abroad, lending, the derivative desk,” Michael Novogratz, Galaxy’s CEO, reportedly told Bloomberg.
“It really felt like an affirmation of everything we’ve been working for,” Novogratz said.
During his campaign, Trump promised to make the US the “crypto capital of the planet and the Bitcoin superpower of the world.”
So far, his policy proposals include creating a Strategic Bitcoin Stockpile, establishing a Crypto Presidential Advisory Council, and barring the Federal Reserve from issuing a digital currency.
Magazine: Crypto voters are already disrupting the 2024 election — and it’s set to continue
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