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GLXY Stock – News and Updated Price Outlook for 2021.
I thought I would share my thoughts on the recent GLXY Stock Q4 updates and other Galaxy Digital news. If you are new to GLXY stock and doing research, I have written numerous posts on Galaxy Digital going all the way back to 2019. I recommend reading this post and then going back to read the others to get a solid understanding of how GLXY stock has evolved over the past 2 years.
For those of you who are regular readers, you probably know some of this news already. I am going to just give my thoughts on the latest call and the takeaways that I have.
Q4 numbers were truly amazing for this company and Q1 of 2021 will be even better. I have updated my price targets once again, as they keep being hit. These are my biggest GLXY stock predictions so far, but totally possible. As always do your own research, this is just my opinion on the stock.
Galaxy Digital Files for US Bitcoin ETF
Galaxy already acts as sub-advisor to a Canadian bitcoin ETF offering sponsored by CI Financial, the CI Galaxy Bitcoin ETF. That particular product began trading on the Toronto Stock Exchange last month.
That ETF product utilizes the Galaxy Bitcoin Index, which is owned and calculated by Bloomberg services. The Galaxy Bitcoin ETF, if approved, would also utilize the Bloomberg index as its pricing mechanism.
Assets Under Management, (AUM)
On April 13 2021 Galaxy Digital reported preliminary assets under management of $1.275 Billion as of March 31, 2021.
GLXY Q4 Earnings Highlights:
The Partnership continues to build a diversified financial services and investment management business in the cryptocurrency and blockchain space. The intention is to capitalize on market opportunities made possible by the ongoing evolution of the digital assets space through five primary business lines: trading, principal investments, asset management, investment banking and mining.
A few interesting quotes from the call:
“Our first quarter will exceed all of last year.”
“Loan portfolio is 100% collaterallized across the book, which we believe compares significantly better than most of our competitors.”
“One of the few key players building an actual institutional grade offering that is equipped to address the bespoke need of institutional clients.”
“Average marginal cost to create,(or mine),a new bitcoin of significantly less than $10k a coin.”
US Stock Listing
Besides the amazing numbers from Q4, this was the most exciting news from the call. Galaxy Digital is preparing to list on one of the top US exchanges in the second half of 2021. Most of us probably assume that it would list on the NASDAQ with other tech stocks. However, GLXY is a mix of tech and banking. Traditional banking stock like Goldman Sachs, list on the NYSE. Either way, the great news here is that Mike Novogratz has given us the signal that a listing is in the works.
Listing in the US on a major exchange should be a big win for investors. The stock will get a lot more attention. New investors from both the retail and corporate side. Potential to be added to new crypto ETFs. I have wrote often that this would happen and be a boost for all the shareholders. So it is great to see it coming to fruition.
A word of caution, they could always do some weird listing where it does affect your shares, but usually companies will just uplist and trade on both exchanges, US and Canada. We will have to see more details but one would assume and hope that everything remains the same for current holders of GLXY stock.
Galaxy Digital Mining (“GDM”) established its own proprietary bitcoin mining operation, hosting its machines at a third-party data center in the United States, and has begun proprietary mining.
Listening to the phone call, I heard them state that they are minting new BTC for under $10k.
GDM closed its first two mining financing deals.
GDM has built a strong pipeline, speaking with over 70+ companies in the space.
The Company made 12 new investments and now holds approximately 80 investments across approximately 60 portfolio companies.
The Company recognized a liquidity event of over $125 million from one of its portfolio companies during the first quarter 2021.
There was no significant change in the Company’s digital asset holdings (excluding non-controlling interests) since December 31, 2020, and the Company has, as a result, benefited from the increase in asset prices since the start of the year
Galaxy Digital Investment Banking
(“GDIB”) continued to make progress for clients across financing, mergers and acquisitions, and other strategic matters, with several active mandates invarious stages of execution.
Key activities as of March 22, 2021 include consulting on a recent cryptocurrency company’s fundraising round.
GDIB also acted as a Strategic Advisor in connection with a public offering in the FinTech space.
GDIB increased client coverage to 90%+ of its target universe.
Galaxy Digital Trading
(“GDT”) expects to generate records in: counterparty trading volumes, the size of its counterparty loan book, and in gross counterparty loan book originations in the first quarter 2021.
In the period between January 1, 2021 and March 22, 2021, GDT counterparty trading volumes continued significant growth, up 40%+ from the quarter ended December 31, 2020, and over 270% year over year.
GDT continued to experience strong growth in the Company’s counterparty loan book for the period from January 1, 2021 to March 22, 2021, increasing in excess of 240% to approximately $380 million, and grew gross counterparty loan originations in excess of 400% since December 31, 2020 to approximately $560 million.
Galaxy Digital Asset Management
(“GDAM”) expects to report preliminary assets under management (“AUM”) of $1.24 billion as of March 22, 2021. AUM consisted of $911.0 million in GDAM’s Galaxy Fund Management products, and $325.0 million in the Galaxy Interactive fund.
Recent product launches include: the CI Galaxy Bitcoin ETF (Ticker: BTCX), and the Galaxy Ethereum Funds. The Galaxy Ethereum Funds track the newly launched Bloomberg Galaxy Ethereum Index (Ticker: XET), the third in the Bloomberg-Galaxy family of indices.
In March 2021, Morgan Stanley began offering its wealth management clients access to bitcoin funds, including the Galaxy Bitcoin Fund LP, and the Galaxy Institutional Bitcoin Fund LP.
Galaxy Bitcoin Fund, LP, Galaxy Institutional Bitcoin Fund, LP, and Galaxy Institutional Bitcoin Fund, Ltd. (collectively the “Bitcoin Funds”) track the Bloomberg CFIX pricing of bitcoin (“XBT”), and the XBT has returned 92.0% on a year-to-date basis through March 22, 2021.
Galaxy Benchmark Crypto Index Fund LP (the “Index Fund”) is a passively managed index fund which tracks the Bloomberg Galaxy Crypto Index (the “BGCI”). The BGCIhas returned 105.6% on a year to date basis through March 22, 2021.
The Partnership’s digital assets are primarily traded in active markets and are purchased with the intent to resell in the near future, generating a profit from the fluctuations in prices or margins. As a result, the Partnership has determined that its holdings of cryptocurrency, both restricted and unrestricted, are considered to be digital assets and, as a result, are accounted for as inventory with changes in fair value less cost to sell recognized in profit or loss. Below are the Partnership’s digital asset holdings as of December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Cryptocurrency:Unrestricted(1) $831,122,534 $85,936,838 Restricted19,257,730 43,893 $ 850,380,264 $ 85,980,731
GLXY Stock Price Outlook
So I like to look at other crypto stocks that already trading on the US exchanges. I think that we can look at a few to get some idea where Galaxy Digital stock might trade for a price. My GLXY price outlook is based on simple data and projections. You won’t find fancy formulas and charts here. I think that there is value in experts and their complicated analysis but the average joe, like you and I, can also make educated guesses.
I mean last year Goldman Sachs said Bitcoin was not an investible asset class, and now they are providing access to Bitcoin for their wealthy clients. The same clients they told not to invest a year ago. My point is that “experts” don’t know everything, and are only right about half the time.
When trying to make an educated guess for GLXY stock price I consider the following:
- How the stock has performed so far.
- Crypto market conditions.
- Growth potential for the company as an investment bank.
- Other crypto stock prices and performance.
- The company assets, investments, team, and products/platforms.
- Network and partners.
- Future Hype and Fomo for crypto stocks.
- Stock being added to ETFs.
So this is just the way I try and predict the future price for GLXY Stock. You can use my guide if you like but always do your own research and come to your own conclusions. I will say this, I have never solely been focused on how much BTC they hold. That is a factor for me, but just one factor. Some people only focus only on how much bitcoin a company has, and I personally don’t focus just on that for a company like Galaxy Digital.
If you want the above breakdown, point by point, of what I like about GLXY Stock, then I suggest you go read my other Galaxy posts.
Comparing other crypto stocks, I like to look at Silvergate Bank, Ticker SI. Silvergate is a crypto bank that trades on the DJIA. In the past year the stock has gone from $9 to its current price of $172. If this stock was trading on the TSX only, like GLXY, it would not be at that price level. Half of the price is just from being on a major US exchange. Others might disagree but that is my opinion.
A year ago, Silvergate was trading at a price-to-earnings ratio of only 12X and a forward “P/E” of 18X. Today, its forward “P/E” is 49X, nearly three times as high as it was then.
There are other companies; Riot Blockchain was $1 a year ago and currently sits $60. Marathon Patent was .40 cents a year ago and now is at $50. Microstrategy hit $1000 this year, from $100 a year ago. Those are just a few examples of US listed crypto stocks. GLXY has exploded too, but the upside for this company, especially with its diversified offerings and portfolio, is even more promising than some of these other companies. Especially with the US listing.
Those are all different companies, with different business models, assets, etc. But looking at the basics prices here, I think GLXY has massive upside.
GLXY Stock Price Outlook
Previously I wrote a prediction that I thought Galaxy Digital stock could go to $50 CAD this year. Taking a look at where things stand now in April, and with confirmation of the listing later this year, I believe that $50 CAD / $40 USD will probably be reached while still only on the TSX. With GLXY uplisted and trading on a major US exchange, I believe that a possible high of $100 USD for GLXY Stock by years end.
Here are the factors that would need to be in place for that to happen, and why I think it is possible.
I believe that a $50 USD GLXY price will happen even if crypto prices stay the same. We already are at $44 CAD currently. Galaxy Digital is making money and would continue to do so and grow even if Bitcoin stays around the $50k range. It could even happen if GLXY only was on the TSX but quite easily with a major US listing.
So GLXY Stock gets to $100 or higher in 2021 with the following conditions. BTC goes to a $75k price range, and GLXY lists on a major US exchange.
Last week BTC dropped only 3% but GLXY dropped 19% on the same day. If you are in crypto stocks keep expecting to see these sorts of irrational swings. They will probably always follow BTC to some degree. But as these stocks become more entrenched as an asset class they should begin to stabilize as they have price discovery and level off.
Too many people are undervaluing some of these stocks when Bitcoin has slight pullbacks and panic selling. Bitcoin could drop 20% and many of these crypto companies could still grow and pump out gains, just based off adoption, new customers and money entering the space. Especially with US ETFs being approved.
Future GLXY Price Predictions
Could GLXY stock reach the price of $200 USD? Yes, I think it could. I do not know when, and the crypto and market conditions would have to be stellar. It is totally possible though. Now, if you have read my previous posts you will see I am usually cautious with any price targets. Almost everything I post is conservative and most of my posts over the past year have been pretty accurate so far. I do think $200 is possible and here is why.
If the crypto sector remains frothy, and people pile into crypto stocks as the hottest trade, then we could easily see Galaxy Digital run up to all sorts of levels. Especially with Coinbase debuting. If COIN stock really runs up, people will be looking for other alternative crypto stocks. Maybe the WSB crowd will finally get involved in crypto.
The sky is the limit if everything falls into place perfectly and Bitcoin hits some of those wild price predictions. Bloomberg just posted a possible $400k price potential for Bitcoin. So who knows where some of these crypto stocks could go to if those types of BTC prices are reached. It would be prudent for any investor to seriously be considering crypto related stocks right now.
Crypto has just had an amazing bull year, so has the stock market. Even if the stock market corrects and cools down, I believe crypto could stay in a bull market. It is “new” and exciting to many investors and traders now. People have finally woken up, and as the hottest and newest asset class on the block, it is where the money could go, even in a traditional market downturn. Not to mention that Bitcoin seems to be taking over some of golds luster. People may have started to pivot from Gold to Bitcoin as a portfolio hedge, and even an inflation hedge.
So there you have it. Some GLXY stock news and my newest price predictions. Listen, we could always enter a bear market or something goes wrong with Bitcoin or Ethereum. But as of now, the crypto asset class appears here to stay. People are excited about it and want to invest. There are still very few crypto related stocks and Galaxy Digital is in a great position.
Do your own research, these are just my opinions. I am not a professional.
Got questions or comments, chime in below.