Galaxy Digital’s Stock Set for Bigger Gains After Trump’s Election Win
On November 5th, Donald Trump’s victory in the United States presidential election sent shockwaves through the cryptocurrency market. As a result, Galaxy Digital’s stock saw a significant surge, rising by 25% on that day. According to a recent analyst report shared with Cointelegraph, this increase is just the beginning of bigger gains for the company.
Institutional Cryptocurrency Adoption Set to Increase
Benchmark fintech analyst Mark Palmer wrote in his report that Trump’s election win has set the stage for more institutional cryptocurrency adoption. As mentioned earlier, Trump had made a pro-crypto stance part of his campaign platform, which could lead to increased demand for digital assets.
Palmer’s price target for Galaxy Digital’s stock (GLXY) was raised to 29 CAD per share from his previous estimate of 19 CAD. The current trading price is around 23 CAD per share. This increase in value can be attributed to the growing interest in cryptocurrencies and the potential for increased institutional adoption.
Trump’s Win Favors Galaxy’s Bid to Uplist Stock
In addition to the stock’s price surge, Trump’s election win also favors Galaxy’s ongoing bid to uplist its stock (GLXY) to the Nasdaq exchange. Despite the Securities and Exchange Commission’s (SEC) less-than-enthusiastic approach to crypto adoption, Palmer believes that a Trump administration will make it more likely for Galaxy to achieve this goal.
Benefits of Helios Data Center Expansion
Galaxy’s flagship data center, Helios, is set to benefit from plans to expand and monetize its high-voltage power capacity in Dickens County, Texas. According to Palmer, Helios stands to gain from the anticipated demand for enormous amounts of power from artificial intelligence (AI) and high-performance computing (HPC) projects.
The expansion of Helios will provide Galaxy with an opportunity to capitalize on the growing need for data center services, particularly in the AI and HPC sectors. This move is expected to contribute significantly to the company’s growth and profitability.
US Crypto Stocks See Massive Gains
Following Trump’s election win, US crypto stocks saw significant gains, often exceeding double digits. Galaxy Digital’s "franchise" was operating at full capacity on election day, trading with counterparties both in the US and abroad, lending, and managing its derivative desk.
Michael Novogratz, Galaxy’s CEO, reportedly told Bloomberg that it felt like an affirmation of everything they’ve been working for. During his campaign, Trump promised to make the US the "crypto capital of the planet" and the Bitcoin superpower of the world.
Policy Proposals Favor Cryptocurrency Adoption
Trump’s policy proposals include creating a Strategic Bitcoin Stockpile, establishing a Crypto Presidential Advisory Council, and barring the Federal Reserve from issuing a digital currency. These initiatives are expected to further promote cryptocurrency adoption in the US and create new opportunities for companies like Galaxy Digital.
Impact on Galaxy Digital’s Stock
As mentioned earlier, Galaxy Digital’s stock saw a significant surge after Trump’s election win, rising by 25% on that day. With Palmer’s price target increase and the company’s ongoing efforts to uplist its stock, it is likely that the stock will continue to see bigger gains.
In conclusion, Trump’s election win has set the stage for increased institutional cryptocurrency adoption, which in turn, will have a positive impact on Galaxy Digital’s stock. The company’s plans to expand and monetize its high-voltage power capacity at Helios data center will also contribute significantly to its growth and profitability.
Related Articles:
- The Influence of the 2024 US Elections on the Crypto Market: Report
- Crypto Voters are Already Disrupting the 2024 Election — and it’s Set to Continue
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