Donald Trump’s win in the United States presidential election on November 5 set the stage for more institutional cryptocurrency adoption, according to a November 8 analyst report shared with Cointelegraph. Galaxy shares rose 25% on November 5 after Republican candidate Trump’s election win sparked the crypto trading firm’s biggest trading day of the year.
The Price Jump
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. This significant increase in stock price is a testament to the growing confidence in cryptocurrency and its potential for growth.
Mark Palmer’s Price Target
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. This increase in price target is a clear indication that the analyst believes Galaxy Digital’s stock has more room to grow.
The Impact on Institutional Adoption
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.
This is a significant development for Galaxy Digital, as a listing on the Nasdaq exchange would provide greater visibility and credibility for the company. It would also give investors more confidence in the stock, leading to increased trading volumes and potentially higher prices.
The Helios Data Center
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. The Helios data center is a key component of Galaxy’s operations, providing critical infrastructure for the company’s trading and lending activities.
Palmer noted that Helios stands to benefit from "the anticipated demand from artificial intelligence and high-performance computing (HPC) projects for enormous amounts of power." This suggests that the data center will be in high demand, driving revenue growth and contributing to Galaxy’s overall success.
The Impact on US Crypto Stocks
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. This sentiment reflects the growing optimism surrounding cryptocurrency and its potential for growth. Trump’s policy proposals, including creating a Strategic Bitcoin Stockpile, establishing a Crypto Presidential Advisory Council, and barring the Federal Reserve from issuing a digital currency, are expected to create a more favorable environment for cryptocurrencies.
The Future of Cryptocurrency
Trump’s election win is seen as a positive development for cryptocurrency, given his pro-crypto stance during the campaign. His policy proposals aim to promote the growth and adoption of cryptocurrencies, creating a more favorable environment for investors and users alike.
In conclusion, Galaxy Digital’s stock is set for bigger gains after Trump’s election win, driven by increased institutional adoption and a more favorable regulatory environment. The company’s flagship Helios data center stands to benefit from growing demand for high-performance computing and artificial intelligence projects, while its push for a Nasdaq listing is likely to succeed under the incoming Trump Administration.
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