Crypto is bouncing back. Citi says Galaxy Digital could too
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Galaxy Digital is poised to bounce back as cryptocurrency prices recover, according to Citi. The investment bank raised its rating on Galaxy to buy from neutral. It also hiked its price target on shares to $28 from $26, implying 41% upside from Monday's close. "Digital assets enter earnings season with a considerably stronger backdrop than just a few months ago," analyst Peter Christiansen said Tuesday in a note to clients. "Against this backdrop, we remain constructive on companies positioned around tokenization and market infrastructure, maintain our preference for AI-enabled infrastructure stories, upgrade Galaxy to Buy." Shares of Galaxy have plunged nearly 52% over the past year. Their decline followed a so-called crypto winter triggered by a series of cascading liquidations of highly leveraged digital assets positions in October 2025. GLXY 1Y mountain Shares are down 52% over the past 12 months. However, crypto companies like Galaxy could see their shares rise as investors focus more on the infrastructure that undergirds stablecoins and other tokenized assets, per Citi. Galaxy's artificial intelligence data center business is central to its transformation into an infrastructure play and has demonstrated stronger earnings potential, according to the bank. "Stronger-than-expected economics at Helios I, increasing confidence in the company's AI infrastructure strategy, and the potential for a Helios II tenant announcement over the next six months could further de-risk the data center business and enhance visibility into long-term earnings power," Christiansen wrote. Recent pushes to achieve greater regulatory clarity on crypto in the U.S. are also likely to gain traction, potentially benefiting Galaxy over time, according to the analyst. Citi's call falls in line with consensus on Wall Street. Of the 16 analysts covering Galaxy Digital, 14 have a buy or strong buy on the stock, while just two have a hold rating on it, LSEG data shows.