Galaxy Shares Expected to Continue Rising After 25 Percent Gain Following US Election Result
Donald Trump’s victory in the 2020 United States presidential election has set the stage for increased institutional cryptocurrency adoption, according to a recent analyst report from Benchmark. The report suggests that Galaxy Digital’s stock is poised for even bigger gains as a result of the election outcome.
Rise in Share Price Following Election Win
On November 5th, Galaxy shares rose by a staggering 25% after Trump’s election win sparked the crypto trading firm’s biggest trading day of the year. This price jump was attributed to the potential for increased institutional adoption of cryptocurrency following Trump’s pro-crypto stance during his campaign.
Mark Palmer’s Price Target Raised
Benchmark fintech analyst Mark Palmer wrote the report, which highlighted the positive impact of Trump’s election on Galaxy Digital’s stock performance. Palmer raised his price target for GLXY (Galaxy Digital’s stock ticker) to 29 CAD per share from his previous estimate of 19 CAD. Currently, the stock trades at around 23 CAD per share.
Institutional Adoption and Nasdaq Listing
Trump’s win also favors Galaxy’s ongoing bid to uplist its stock to the Nasdaq exchange. Palmer noted that Galaxy’s push for a Nasdaq listing will be more likely to occur under the incoming Trump Administration, which has taken a pro-crypto stance.
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. According to Palmer, Helios will benefit from the anticipated demand for enormous amounts of power from artificial intelligence (AI) and high-performance computing (HPC) projects.
US Crypto Stocks See Massive Gains
US crypto stocks saw massive gains following Trump’s election win, often reaching double-digit increases in value. Galaxy Digital’s CEO, Michael Novogratz, reportedly told Bloomberg that the company’s franchise was operating at full capacity on election day, trading with counterparties both domestically and internationally.
"It really felt like an affirmation of everything we’ve been working for," Novogratz said. This sentiment reflects the excitement among crypto traders and investors following Trump’s pro-crypto policy proposals.
Trump’s Pro-Crypto Policy Proposals
During his campaign, Trump promised to make the US the "crypto capital of the planet" and establish a Bitcoin superpower. Some of his policy proposals include:
- Creating a Strategic Bitcoin Stockpile: This would involve the creation of a strategic reserve of Bitcoins for the country.
- Establishing a Crypto Presidential Advisory Council: This council would provide guidance on crypto-related policies to the government.
- Barring the Federal Reserve from issuing a digital currency: Trump’s administration has expressed concerns about the potential risks associated with central bank-issued cryptocurrencies.
Impact of Election Outcome on Galaxy Digital’s Stock
The election outcome is expected to have a positive impact on Galaxy Digital’s stock performance, given Trump’s pro-crypto stance. The company’s plans to expand and monetize its high-voltage power capacity at the Helios data center are also likely to benefit from the anticipated demand for enormous amounts of power.
In conclusion, the recent analyst report suggests that Galaxy Digital’s stock is set for bigger gains following Donald Trump’s election win in the United States. The pro-crypto stance taken by the Trump Administration and the potential for increased institutional adoption of cryptocurrency will likely drive up the company’s stock price.
Recommendations
Based on the analysis presented, investors may consider investing in Galaxy Digital’s stock given its growth prospects and the positive impact of Trump’s election win. However, it is essential to conduct thorough research and consult with a financial advisor before making any investment decisions.
Related Articles
- The Influence of the 2024 US Elections on the Crypto Market: Report: This article explores the potential impact of the upcoming US presidential elections on the crypto market.
- Crypto Voters are Already Disrupting the 2024 Election — and it’s Set to Continue: This piece examines how crypto enthusiasts are influencing the 2024 election outcome.
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