The recent US presidential election has sparked a significant increase in the stock price of Galaxy Digital, with shares rising by 25% on November 5th. This surge is attributed to Donald Trump’s win, which sets the stage for increased institutional adoption of cryptocurrency. According to a report from Benchmark, a fintech analyst firm, this trend is likely to continue.
Benchmark Analyst Raises Price Target for GLXY
Mark Palmer, a Benchmark analyst, has raised his price target for Galaxy Digital’s stock (GLXY) to 29 CAD per share, up from his previous estimate of 19 CAD. This increase reflects the potential for increased institutional adoption of cryptocurrency, which is a key aspect of Trump’s campaign platform.
Trump’s Pro-Crypto Stance
During his presidential campaign, Donald Trump expressed his support for cryptocurrency and its potential to revolutionize the financial sector. His 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 have sparked hopes for a pro-crypto US policy overhaul.
Galaxy Digital’s Push for Nasdaq Listing
The company’s ongoing bid to uplist its stock to the Nasdaq exchange is expected to gain momentum under the incoming Trump Administration. Despite the Securities and Exchange Commission’s (SEC) less-than-enthusiastic approach to cryptocurrency, Galaxy Digital remains committed to its goal.
Helios Data Center Set for Expansion
Galaxy Digital’s flagship Helios data center in Dickens County, Texas, is set to expand its high-voltage power capacity. This expansion is expected to meet the growing demand from artificial intelligence and high-performance computing (HPC) projects for enormous amounts of power. As Palmer notes, "Helios stands to benefit from the anticipated demand for enormous amounts of power."
Trump’s Win Stirs Hopes for Crypto Policy Overhaul
The US crypto stocks have seen significant gains following Trump’s win, with Galaxy Digital leading the charge. The company’s CEO, Michael Novogratz, reportedly stated that "It really felt like an affirmation of everything we’ve been working for." This sentiment reflects the optimism surrounding Trump’s pro-crypto stance and its potential to drive institutional adoption.
Why Trump’s Pro-Crypto Policies Matter
Trump’s policy proposals have sparked hopes for a new era of crypto-friendly policies in the US. These initiatives include:
- Strategic Bitcoin Stockpile: A plan to create a strategic stockpile of Bitcoin, which would serve as a hedge against market volatility.
- Crypto Presidential Advisory Council: A council that would provide expert advice on cryptocurrency-related matters to the President and his administration.
- Barring Federal Reserve from issuing digital currency: A proposal to prevent the Federal Reserve from issuing its own digital currency.
These policies have significant implications for the crypto industry, with Galaxy Digital poised to benefit from the increased institutional adoption of cryptocurrency.
Conclusion
The recent US presidential election has set the stage for increased institutional adoption of cryptocurrency. With Trump’s pro-crypto stance and policy proposals, Galaxy Digital is well-positioned to capitalize on this trend. The company’s stock price surge reflects the optimism surrounding its future prospects, with shares rising by 25% on November 5th.
Sources:
- Benchmark analyst report
- Bloomberg interview with Michael Novogratz
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
Stay ahead of the curve by following us for more in-depth analysis and insights into the world of cryptocurrency. Subscribe to our newsletter for regular updates and stay informed about market trends.
Subscribe to Markets Outlook:
- Critical Insights: Stay up-to-date with expert analysis on market trends, investment opportunities, and risk mitigation strategies.
- Spot Investment Opportunities: Get ahead of the curve with timely insights into emerging markets and trends.
- Mitigate Risks: Refine your trading strategies with expert advice on navigating market volatility.
Delivered every Monday to your inbox. Subscribe now!
