Citi upgrades Galaxy Digital as crypto recovery and U.S. regulatory clarity lift outlook

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Citi upgrades Galaxy Digital outlook

Highlights

Citi upgrades Galaxy Digital to buy from neutral and raises its price target to $28 from $26, signaling 41% upside from Monday's close.
Citi cites stronger-than-expected economics at Helios I, confidence in Galaxy's AI infrastructure strategy, and a possible Helios II tenant announcement as risk-reducing drivers.
Crypto price recovery and increased U.S. regulatory clarity improve sector sentiment, aligning with 14 out of 16 analysts rating Galaxy Digital buy or strong buy per LSEG data.

Brokerage call highlights earnings and infrastructure potential

As reported by CNBC, citing Citi, the bank upgrades Galaxy Digital to buy from neutral and raises its price target to $28 from $26, implying 41% upside from Monday's close. Analyst Peter Christiansen says in a note to clients on Tuesday that digital assets are entering earnings season with a considerably stronger backdrop than a few months ago.

Christiansen says Citi remains constructive on companies positioned around tokenization and market infrastructure, while also keeping its preference for AI-enabled infrastructure stories. In that context, Galaxy's artificial intelligence data center business is seen as central to the company's shift toward an infrastructure-focused model, with stronger earnings potential.

Citi adds that stronger-than-expected economics at Helios I, rising confidence in Galaxy's AI infrastructure strategy and the potential for a Helios II tenant announcement over the next six months could further reduce risk around the data center business and improve visibility into long-term earnings power.

Crypto rebound and policy shifts support sentiment

Galaxy shares have fallen nearly 52% over the past year after a crypto winter tied to cascading liquidations of highly leveraged digital asset positions in October 2025. Citi says that backdrop is now improving as cryptocurrency prices recover and investors pay closer attention to the infrastructure supporting stablecoins and other tokenized assets.

The bank also says recent efforts to bring greater regulatory clarity to crypto in the U.S. are likely to gain traction over time, a trend that could support Galaxy further. Citi's view broadly aligns with Wall Street consensus, with LSEG data showing that 14 of the 16 analysts covering Galaxy Digital rate the stock buy or strong buy, while two maintain hold ratings.

Our earlier article on regulators’ growing scrutiny of banks’ use of advanced AI explained how U.S. and European supervisors are pressing lenders to strengthen controls, human oversight, and shutdown mechanisms for increasingly autonomous systems. It also highlighted that AI-driven cyber risks and third-party dependencies could force higher spending on recovery planning and resilience, as authorities push banks to document and test stronger backup and recovery arrangements.

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