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Writing about Galaxy Digital Bank, is me, talking my book. I would not pretend otherwise. I have believed the stock was a good investment and still do. People are taking note of Galaxy Digital and wondering if it is a good investment and price prediction.
I have accumulated a nice position in the stock and am holding for the long term.
Anyone can attempt to predict prices, most of the time, even the experts are wrong. So far, Galaxy has followed my predictions and reached my minimum goal. Now that the stock price is at $3.50, what could Galaxy Digital stock price be by the end of 2020?
The stock market right now is hot, I think too hot. There is a fear of missing out and people are starting to chase some stocks, especially tech. We also have Crypto, Bitcoin, and Ethereum finally entering a bull market again. We never know if the two markets will rise and fall together or one will crash while the other one continues upwards. A sell off in the stock market would probably impact the price of Galaxy Digital as well. Especially from speculators. Galaxy does have a low float which can cause the price to move quickly with large volume. However, if you are of the opinion that the price of Crypto will most affect Galaxy, then I guess you can discount the stock market and focus on the Crypto markets. While some of the bull run is just the overall frenzy and spillover from the stock market, there is also a camp that believes the Crypto run is separate and more like the rise of Gold, as a hedge on inflation or other events. If so, Crypto could have a smaller sell-off than the regular stock market, and even be a safe haven if traditional stocks start to correct or even crash back to earth. I am not here to make a prediction what it will do, nobody knows, but I will layout some possible prices for either event.
First, let us assume that the stock market continues to rise, as does the Crypto market. In that case, I think Galaxy Digital Stock price is at $5 soon. It would be buoyed by both stock and Crypto markets and investor confidence from both sides. Please note my prices are in US dollars, not Canadian, this stock can be tricky if you look at the wrong exchange listing. The Canadian listing will always be about a dollar higher that the US listing.
In the second case, the traditional stock markets correct, but Crypto markets do not, and they keep climbing. In this case I think we see a slight pullback to maybe $2 and then a slow upward climb again, as people who want the Crypto play look for opportunity. Maybe we get back to or stay around the $3.50 range in that scenario.
The third scenario is we have a correction in both markets, Stock and Crypto, and Galaxy sells off along with them. In that case where everything just starts to spiral downwards I think the price will be back around $1.25 range. Possibly back under $1 even. This is the worst case scenario, but like the best case scenario, you almost have double the pressure up or down, because you have the stock affected by 2 different markets.
As I stated before a few weeks ago, I think that the stock is still undervalued and if Novogratz can do this right, and capture the traditional investors when Bitcoin and Ethereum take off again, the stock could now be anywhere from $4 – $10 over the next year with the right market conditions. Let’s all cross our fingers that he figures it out and gets the marketing and awareness to where it needs to be.
If Galaxy gets listed in the US, on the NASDAQ, which I believe is the eventual plan, the stock really could take off. My long term thoughts on the eventual price of Galaxy Digital Bank, is that it could potentially be a future JP Morgan, or Goldman. While that sounds crazy, it really is not, if they do it right. If you believe that digital assets are going to play a big role in the future of finance, then you would want to make a bet on Galaxy or other Digital Banks. I think in the next few years Galaxy Digital Bank could be priced at $20 or more with the right moves and conditions, but that is only with everything going perfectly.
I should note I think that Mike Novogratz is way too political on Twitter and turning off possible investors with his talk. While he is free to do so, he is essentially the Galaxy twitter account and the voice of the company. Galaxy needs to act more like a larger bank, with more outreach and social media accounts that tweet and message on topic and about the company. I believe this for any company now, not just Galaxy, things are too polarizing and you risk turning off one side or the other when discussing politics instead of how you are going to improve the company and value for the stockholder. We have become too intermingled and it will be a negative in the future.
As a reminder, the ticker symbol for Galaxy Digital Bank Stock is BRPHF here in the US and GLXY or GLXY.TO or GLXY.V in Canada on the TSX.
This is not advice. I am not a professional.
This is just my opinion. Do your own research.