Galaxy Poised for Upside Amid Regulatory Clarity, According to Jefferies Buy Recommendation

Galaxy Digital (GLXY) has received a buy rating and a $35 price target from Jefferies, as the investment firm highlights the company’s strong positioning at the intersection of digital assets and artificial intelligence infrastructure.

In a research note released Tuesday, Jefferies said Galaxy stands to benefit significantly from the recently passed GENIUS Act, which establishes a more favorable regulatory framework for digital assets in the U.S. The firm noted this legislation provides a clearer market structure, creating a more supportive environment for Galaxy’s core financial services business.

Beyond crypto, Jefferies underscored Galaxy’s strategic expansion into AI data centers. The company’s lease of CoreWeave’s 393 MW Helios facility in West Texas was labeled a “transformational deal” that could unlock substantial revenue as demand for high-performance computing (HPC) capacity surges.

Although Galaxy is widely recognized for its digital asset services—including trading, asset management, and advisory—Jefferies estimates that two-thirds of the firm’s value now comes from its data center business.

Shares of Galaxy Digital closed up 6.2% at $29.11 on Tuesday and continued to climb in pre-market trading Wednesday, rising an additional 3% to $30.

Galaxy’s dual exposure to crypto and AI reflects a broader industry trend, as Bitcoin mining firms pivot toward AI infrastructure to diversify revenue amid tightening mining margins. With overlapping hardware requirements and expertise, the transition to AI hosting presents a logical evolution for firms like Galaxy.

Jefferies views Galaxy as “well-positioned” to capitalize on these converging trends and expects upside as regulatory clarity and infrastructure demand continue to build.