Jefferies has initiated coverage on Galaxy Digital (GLXY) with a buy rating and a $35 price target, highlighting the firm’s unique positioning across both cryptocurrency markets and the rapidly expanding AI infrastructure sector.
In a report released Tuesday, Jefferies pointed to the GENIUS Act recently passed in the U.S., calling it a major regulatory catalyst that provides Galaxy with a more favorable and transparent market structure for digital assets. The legislation is seen as paving the way for broader institutional engagement—benefiting firms like Galaxy that offer trading, investment banking, and asset management in the crypto space.
Beyond its core crypto services, Jefferies noted Galaxy’s strategic push into AI data center operations as a key growth driver. The report called the firm’s lease of CoreWeave’s 393-megawatt Helios site in West Texas a “transformational” move, giving Galaxy exposure to booming demand for high-performance computing infrastructure.
Galaxy shares rose 6% to $29.11 on Tuesday and were trading around $30 in early pre-market on Wednesday.
Though Galaxy is widely known for its crypto operations, Jefferies estimates that nearly two-thirds of the company’s value now stems from its data center expansion. As AI adoption accelerates and demand for computational power surges, Galaxy’s infrastructure play is viewed as a key long-term value driver.
The move also aligns with a broader trend: Bitcoin miners are increasingly pivoting to AI hosting, leveraging their hardware, technical expertise, and facilities to serve a more lucrative and growing market.
With exposure to both the digital asset ecosystem and the AI compute economy, Jefferies believes Galaxy is well positioned for continued upside in the current macro environment.
