Rosenblatt analyst Andrew Bond initiated coverage of Galaxy Digital Holdings Ltd. with a Buy rating and a C$6.30 price target. Galaxy operates in digital asset, cryptocurrency, and blockchain technology industry, and is involved in segments such as Trading, Asset Management, Investment Banking, and Mining.
According to Bond, Galaxy Digital has a business model that can withstand volatility and, even thrive on it in some cases. While the FTX debacle will cause near-term slowing of industry growth, Bond indicated that Galaxy is still gaining market share from prominent players, thanks to Galaxy’s better compliance with risk management and transparency as well as its strong balance sheet. Bond believes that Galaxy’s investment capabilities-driven growth will be further supplemented by its operating businesses and prime brokerage services.
Bond is of the opinion that regulation of the cryptocurrency market supports Galaxy’s business model.