Galaxy Digital Selloff Misses Bigger Catalysts in AI, Regulatory Shift; Benchmark Still Sees 170% Upside

Galaxy Digital Holdings (GD), the prominent financial services and investment management firm focused on the digital asset economy, has recently experienced market pressure leading to a measurable selloff in its stock price. While some investors may be reacting to general cryptocurrency market volatility or short-term earnings reports, analyst consensus suggests that the current downturn fundamentally overlooks major structural catalysts poised to drive significant long-term growth.

The key misunderstanding, according to industry observers, lies in failing to recognize GD’s evolving business model, which extends far beyond pure trading. Two major growth engines are cited: the rise of Artificial Intelligence (AI) and the impending shift in the regulatory landscape.

Firstly, AI integration is becoming increasingly intertwined with digital asset infrastructure and compute power. Galaxy Digital is positioned to benefit from this convergence, whether through supporting institutional infrastructure necessary for AI-driven trading strategies or potentially investing in the core digital resource layer that powers high-demand AI applications. The firm’s diversified exposure acts as a hedge against single-sector volatility.

Secondly, the gradual clarification and maturation of regulatory frameworks in major global jurisdictions are expected to unlock massive institutional capital inflows. As a diversified, regulated entity involved in asset management, mining, and investment banking within the digital sphere, GD is considered a primary beneficiary of this institutional acceptance and regulatory clarity, which validates their long-term infrastructure investments.

Leading this bullish perspective is Benchmark, which maintains a strong ‘Buy’ rating on the stock. Benchmark analysts argue that the current market price does not reflect the underlying value generated by GD’s proprietary businesses, nor the potential yield from its strategic venture capital arm. Benchmark reiterated its price target, implying a substantial upside of approximately 170% from recent trading levels, based on the belief that sustained innovation and regulatory clarity will fully manifest in GD’s valuation over the next 18 months.

Source: Galaxy Digital selloff misses bigger catalysts in AI, regulatory shift as Benchmark still sees 170% upside