Galaxy Digital's Potential in AI and Crypto Regulation Highlighted Amid Stock Decline

Despite a significant fourth-quarter loss of $482 million leading to a drop in Galaxy Digital's stock price, Benchmark analysts suggest the market may be overlooking the company's long-term potential in AI data centers and U.S. crypto regulatory legislation. According to PANews, Galaxy's current stock price is approximately $21, with Benchmark maintaining a 'buy' rating and setting a target price of $57, indicating a potential 170% increase. Galaxy CEO Mike Novogratz expressed optimism during an earnings call, stating there is a 75%-80% chance of U.S. crypto market structure legislation passing, which could attract more institutional capital. The company plans to announce additional institutional partnerships and infrastructure expansion in the coming quarters, including the development of on-chain credit markets. Benchmark also highlighted Galaxy's Helios data center in Texas as an undervalued asset, with over 1.6 gigawatts of approved power capacity. The center is expected to generate revenue this year through a leasing agreement with AI cloud service provider CoreWeave. Analysts believe the valuation of the Helios data center alone could exceed Galaxy's current market value. Despite the decline in fourth-quarter performance, Galaxy's lending business continues to grow, with total loans reaching $1.8 billion. The company also holds $2.6 billion in cash and stablecoin reserves, providing ample financial support for expansion in the crypto infrastructure and AI sectors.