Citi Upgrades Galaxy Digital Amid Cryptocurrency Recovery
Strong Outlook on Digital Assets
Citi has revised its rating for Galaxy Digital, moving from a neutral to a buy stance, reflecting an optimistic outlook for the cryptocurrency market. The investment bank also increased its price target for the company’s stock to $28, a notable rise from a previous target of $26, suggesting a potential upside of 41% based on recent market performance.
Analyst Insights
Peter Christiansen, a Citi analyst, noted that digital assets are entering the earnings season with a significantly stronger market position compared to just a few months ago. Christiansen elaborated, stating, “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.”
Performance Trends and Market Conditions
Over the past year, Galaxy Digital’s shares have experienced a decline of approximately 52%. This downturn is largely attributed to a “crypto winter” initiated by a wave of liquidations involving heavily leveraged digital asset positions in October 2025. Despite this significant drop, the financial landscape suggests that companies like Galaxy may capitalize on renewed investor interest in the foundational technologies surrounding stablecoins and tokenized assets.
Focus on AI Infrastructure
Central to Galaxy Digital’s strategy is its AI data center business, which is pivotal in redefining the company as an infrastructure-centric entity. According to Citi, this sector has shown promising earnings potential. Christiansen pointed out, “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.”
Regulatory Environment and Future Prospects
Furthermore, ongoing efforts to establish clearer regulations for cryptocurrencies in the U.S. are expected to gain momentum, potentially benefiting Galaxy Digital and its future operations. This evolving landscape aligns with broader positive sentiment observed on Wall Street regarding Galaxy Digital.
Wall Street Consensus
Citi’s updated rating aligns with the general consensus among analysts, as data from LSEG reveals that 14 out of 16 analysts monitoring Galaxy Digital have assigned a buy or strong buy rating, while only two maintain a hold rating on the stock.
