Jefferies Initiates Galaxy Digital With Buy Rating, Sees AI and Regulatory Tailwinds Driving Growth

Investment bank Jefferies has launched coverage of Galaxy Digital (GLXY) with a buy rating and a $35 price target, citing the firm’s strategic positioning at the intersection of digital assets and artificial intelligence (AI) infrastructure.

In its latest research note, Jefferies pointed to the recently passed GENIUS Act in the U.S. as a key regulatory catalyst, creating a favorable market structure for crypto firms like Galaxy. The legislation is expected to improve clarity and compliance pathways, potentially unlocking new institutional capital flows.

Galaxy, founded by Mike Novogratz, is traditionally known for its crypto-focused services, including trading, asset management, and investment banking. However, Jefferies emphasized that the company’s data center strategy is now a core value driver, estimating that as much as two-thirds of Galaxy’s valuation is tied to its infrastructure business.

A centerpiece of this transformation is Galaxy’s lease agreement with CoreWeave, giving it access to a 393-megawatt data center at Helios in West Texas. Jefferies called the deal “transformational” as it positions Galaxy to profit from soaring demand for AI compute infrastructure—a trend accelerating amid the broader tech pivot to high-performance computing (HPC).

Galaxy shares rallied following the report, closing Tuesday up over 6% at $29.11, and climbing another 3% in pre-market trading Wednesday, approaching the $30 mark.

The move into AI-aligned infrastructure follows a broader trend across the crypto mining industry. With tougher economics in Bitcoin (BTC) mining, many firms are diversifying into AI data services, capitalizing on overlapping requirements in hardware and engineering expertise between BTC mining and AI computation.

Jefferies sees this hybrid positioning as a strategic advantage for Galaxy Digital, giving the company dual exposure to both the evolving digital asset landscape and the explosive growth of AI infrastructure.