Looking for equities exposure to crypto? ATB Capital analyst Martin Toner has an idea for you.
On December 15, Toner initiated coverage of Galaxy Digital (Galaxy Digital Stock Quote, Chart, News, Analysts, Financials TSX:GLXY) with an “Outperform” rating and price target of $13.00, implying a return of 36.8 per cent at the time of publication.
The analyst laid out his investment thesis on the stock.
“As momentum returns to the price of BTC, investors are turning their attention to levered equity plays on cryptocurrencies. After a quiet 2023, investors are starting to recognize GLXY’s leverage to improving digital asset markets. In Q3/23, GLXY had book value of US$1.5bn, $472mm in BTC, and $227mm in ETH. The increase in the value of GLXY’s balance sheet is just one way that GLXY benefits from price appreciation in digital assets. Fees on AUM, client-facing trading, investment banking advisory, and venture…
