Galaxy Well-Placed to Benefit From Regulatory Shifts, Says Jefferies in Bullish Coverage Initiation

Jefferies Initiates Buy Rating on Galaxy Digital, Citing Crypto Tailwinds and AI Data Center Growth

Jefferies has initiated coverage of Galaxy Digital (GLXY) with a buy rating and a price target of $35, pointing to favorable U.S. crypto regulation and the firm’s growing exposure to artificial intelligence infrastructure as key catalysts for growth.

In a research note released Tuesday, Jefferies highlighted the passage of the GENIUS Act in the U.S. as a turning point that improves market conditions for regulated digital asset firms. The new regulatory clarity is expected to benefit Galaxy’s diversified crypto operations, including trading, investment banking, and asset management.

However, Jefferies sees Galaxy’s biggest opportunity in its pivot toward the AI sector. The firm emphasized that approximately two-thirds of Galaxy’s value is now tied to its data center operations, not just digital asset services.

The research noted Galaxy’s lease of CoreWeave’s 393 MW Helios facility in West Texas as a game-changing move, enabling the company to tap into growing demand for high-performance computing infrastructure that powers AI workloads.

Shares of Galaxy closed 6.3% higher at $29.11 on Tuesday and gained another 3% in pre-market trading on Wednesday, nearing the firm’s new target of $35.

Galaxy’s expansion into AI-aligned infrastructure reflects a broader shift in the Bitcoin mining industry, which is increasingly reallocating capital and expertise toward AI data centers. Both industries require similar high-performance hardware and technical capabilities, making the transition a natural fit.

Jefferies believes Galaxy is well-positioned to capture value from this convergence, benefiting from both the resurgence in digital asset markets and the long-term tailwinds behind AI infrastructure development.

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