Galaxy Digital (GLXY) has evolved its business in a thoughtful and methodical manner, and while the regulatory backdrop remains challenging, the opportunities and competitive position it has set remain attractive, according to broker Cana. Code Genuity said in a report released by the crypto financial services company on Tuesday. First quarter results.
The Toronto-based company, founded by CEO Mike Novogratz, said net income rose 40% sequentially to $422 million, and the broker expects the strong momentum to continue. He said he is doing so.
Analysts led by Joseph Vuffy said: “We expect to see steady progress in the growth and maturation of each of the company's three business units in the coming quarters.”
Galaxy Trading increased its total counterparty count to 1,161 in the first quarter from 1,052 in the fourth quarter, and counterparty trading revenue increased 79% to $66 million, the report noted. approval This is due to the rise in the price of spot Bitcoin (BTC) exchange-traded funds (ETFs) in January.
“The approval of Spot Bitcoin ETFs is a major catalyst for increased counterparty engagement, as some of the more traditional asset managers and hedge funds are entering or re-entering the space,” the authors write. is writing.
GalaxyOne also attracted further attention with more than 75 institutional clients and more than $1 billion in assets on the platform, the memo said. “This is a client population that is perfectly suited for us to offer a suite of products including custody, lending, spot trading, hedging and derivatives.”
Canaccord said its asset management business also performed well, with assets under management (AUM) for the quarter up 50% from the previous quarter to $7.8 billion.
“Galaxy continues to grow its infrastructure and GK8 businesses, with assets in place reaching $486 million, an increase of 100% sequentially,” the report added. The company acquired self-management platform GK8 for $44 million in February last year.
The company is also increasing its own mining hash rate, and the Helios facility “presents an opportunity for Galaxy to pursue both mining and AI hosting long-term,” the broker said. Canaccord rates Galaxy stock a buy, with a price target of C$17. The stock price closed at C$12.41 on Tuesday.
