Galaxy Digital Has Several Positive Catalysts in Play This Year: Canaccord
Crypto financial services firm Galaxy Digital (GLXY) ended 2023 with strong operating results across its diversified business, according to a research report by Canaccord Genuity. The report highlighted that assets under management (AUM) almost doubled to over $10 billion, equity capital grew to over $2.1 billion from about $1.5 billion at the end of the third quarter, and income before tax was around $300 million. The firm's business model continues to evolve, focusing on institutional trading and the development of its crypto-specific prime brokerage product, Galaxy One. The firm's relationship with the FTX estate led to a significant increase in AUM in the asset-management unit. Exchange-traded fund (ETF) activity, particularly rollouts with European partner DWS in bitcoin and ether, and the gradual ramp-up of the U.S. BTC ETF with partner Invesco, were also noted as positive developments. Canaccord maintained its buy rating on Galaxy shares with an unchanged price target of C$17 ($12).
