A brokerage firm BTIG has updated its ratings for a crypto financial services firm, Galaxy Digital Holdings Ltd (TSE: GLXY)
What Happened: According to a Thursday Coindesk report, BTIG rated Galaxy Digital shares “buy” with a price target of CAD 31 ($25,62) in a research report published the same day.
The rating follows early May reports that the crypto bank is acquiring crypto infrastructure provider BitGo specialized in digital asset custody, for $1.2 billion.
The deal — purportedly the crypto industry’s first billion-dollar acquisition — is expected to be completed in the fourth quarter of 2021.
BITG also believes that major United States bank Morgan Stanley (NYSE:MS) will boost Galaxy Digital’s assets under management thanks to the recent partnership.
As CNBC reported earlier this month, Morgan Stanley became the first major U.S. bank to offer its wealthy clients access to bitcoin funds — with one of the options being managed by Galaxy Digital.
The CAD 31 target for Galaxy Digital’s stock is based on an analysis of the net asset value of the company’s principal investments and its operating business revenue.
The potential gains on digital assets and investments were not considered.
BTIG explains in its report that the risks are a sustained decline in crypto prices, decreasing the firm’s assets under management, cybersecurity risks, credit risks, competition, and regulatory risks.
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