Citi Upgrades Galaxy Digital to Buy, Citing Crypto Recovery and AI Growth Potential

Galaxy Digital is positioned for a rebound as cryptocurrency prices recover, according to Citi. The investment bank upgraded its rating on Galaxy to buy from neutral and lifted its price target to $28 from $26, implying a 41% upside from Monday’s close. “Digital assets enter earnings season with a considerably stronger backdrop than just a few months ago,” analyst Peter Christiansen said Tuesday in a note to clients. “Against this backdrop, we remain constructive on companies positioned around tokenization and market infrastructure, maintain our preference for AI‑enabled infrastructure stories, upgrade Galaxy to Buy.” Shares of Galaxy have dropped about 52% over the past year, following a crypto winter that began with a series of cascading liquidations of highly leveraged digital assets positions in October 2025. However, Citi notes that investor focus is shifting toward the infrastructure that underpins stablecoins and other tokenized assets. Galaxy’s artificial‑intelligence data‑center business is central to its transformation into an infrastructure play and has demonstrated stronger earnings potential. “Stronger‑than‑expected economics at Helios I, increasing confidence in the company’s AI infrastructure strategy, and the potential for a Helios II tenant announcement over the next six months could further de‑risk the data‑center business and enhance visibility into long‑term earnings power,” Christiansen wrote. Recent pushes to achieve greater regulatory clarity on crypto in the U.S. are also likely to gain traction, potentially benefiting Galaxy over time. Citi’s call aligns with Wall Street consensus, where 14 of 16 analysts covering Galaxy Digital rate the stock a buy or strong buy, while only two hold a hold rating, according to LSEG data.

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