30s Summary
Galaxy Digital’s share price surged 25% following Donald Trump’s presidential win, marking the firm’s strongest trading day this year. Analyst, Mark Palmer, believes the win could steer more institutions towards cryptocurrency – impacting positively on Galaxy’s ongoing stock listing efforts – and has increased his Galaxy share price prediction to CAD29 from CAD19. Galaxy also stands to make gains from its Texas-based Helios data center, expected to see increasing demand from AI and high-performance computing projects.
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Galaxy Digital’s shares are set to increase even more following Donald Trump’s win in the U.S. presidential elections on November 5. This victory is expected to encourage more institutions to adopt cryptocurrency, says a recent analysis report shared with Cointelegraph.
After Trump’s win, Galaxy’s shares spiked by 25% as this marked the company’s biggest trading day of the year. The increase was in response to Trump’s supportive stance on crypto, which was a part of his election campaign. This could mean more institutions will adopt crypto.
Benchmark fintech analyst, Mark Palmer, who wrote the report, has increased his price target for Galaxy Digital shares (GLXY) to 29 CAD per share. His previous estimate was 19 CAD. At the moment, it’s trading around 23 CAD per share.
Trump’s win could also positively impact Galaxy’s ongoing efforts to list its stock, GLXY, on the Nasdaq exchange. Despite the Securities and Exchange Commission not being too excited about crypto, this listing is more likely to happen under the incoming Trump Administration, said Palmer.
Palmer also mentioned that Galaxy stands to benefit from their plans to grow and make money from the high-voltage power capacity at their main Helios data center in Texas. He said this center could benefit from the expected demand from projects in artificial intelligence (AI) and high-performance computing (HPC) which require huge amounts of power.
During Trump’s campaign, he promised to make the US the “crypto capital of the planet and the Bitcoin superpower of the world.” His policy proposals so far include the creation of a Strategic Bitcoin Stockpile, establishing a Crypto Presidential Advisory Council, and preventing the Federal Reserve from issuing a digital currency.
The market saw huge gains in US crypto stocks after the election. Galaxy’s CEO, Michael Novogratz, noted their strong performance on election day, stating “It really felt like an affirmation of everything we’ve been working for.”