How to Buy Galaxy Digital Stock

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Contributor, Benzinga
April 28, 2022

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Galaxy Digital is an American financial services and investment management company that operates a line of trading, investments, asset management and advisory services. It is a technology-driven firm that hopes to successfully bridge the gap between the crypto and institutional worlds.

The company was founded by Michael Novogratz in 2018. As a relatively new firm, the company sees a massive opportunity as it continues to expand into multiple markets.

How to Buy Galaxy Digital Stock

To buy Galaxy Digital Holdings, you can follow the basic steps of buying any stock. However, Galaxy Digital is currently listed on Toronto Stock Exchange, so not all brokers will offer the stock on their platform.

In addition, if you do not have a brokerage account, you can follow these steps to set it up.

Step 1: Pick a brokerage.

A broker works as the intermediary between the trader and the stock exchange to carry out the instructions you set. For example, if you decide to purchase shares in Galaxy Digital, you instruct your broker to buy the number of shares requested, and it will buy them. 

In return, the broker will charge you for its services. The price and type of fee vary depending on the broker. Therefore, research each broker's fees and benefits suited for you.

Step 2: Decide how many shares you want.

Fund your account and determine how many shares will be best to purchase. Determine the amount of risk you want to take and the percentage of your account attributed to Galaxy Digital.

Your investment strategy can include starting with a small investment and adding consistently over time.

Step 3: Choose your order type.

This stage will be essential to determine your execution in the market.

Market orders mean you acquire the shares at a price dictated by the market, so they have a high chance of being filled, but the price you pay is not dictated by yourself.

Limit orders give you more freedom to enter at the price you wish, but you risk the potential that the order won’t be filled if the price doesn’t hit your predetermined level. 

Step 4: Execute your trade. 

All the necessary steps are complete, putting you in a position to buy the shares. Click buy. Once concluded, you can watch the stock and your other positions by going to the appropriate tab on your brokerage platform.

Where to Buy Galaxy Digital

Galaxy Digital is listed on the Toronto Stock Exchange, and it may be difficult to find the stock. However, to save you time researching brokers, below is a list of the best brokers that provide the option of investing in Galaxy Digital.

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BRPHF Stock History & Value

Galaxy Digital has a strong presence in the crypto space. Therefore, how the top-performing crypto assets perform will have a bearing on how well Galaxy’s stock price does. And, of course, the volatility in cryptocurrencies will be somewhat reflected in Galaxy Digital’s stock price. 

The stock was relatively unmoved until 2021 when it made significant gains in correlation with Bitcoin's spike in price. However, gains preceded substantial falls over the previous year. As a result, it has been unable to sustain any push higher.

More banks have been adopting crypto in some form or another because of increased demand. For example, Galaxy shares jumped over 20% in March after the stock facilitated its first over-the-counter transaction with Goldman Sachs in the form of a Bitcoin non-deliverable option.

Elsewhere, the company announced the acquisition of BitGo in 2021, although the deal is yet to be finalized.

Its earnings for the full year saw income increase 345% to $1.7 billion. However, since posting those earnings, the stock has lost an extensive portion of its gains from March.

Galaxy Digital: What Analysts Are Saying

Analyst ratings help provide a view of where the stock may be headed. According to TipRanks, Galaxy Digital currently has two Buy ratings with an average price target of $41.50. The following section will help detail an outlook for the stock. 

Bear Case

On January 19, financial writer Jitendra Parashar made the case that “the ongoing cryptocurrency market selloff could hurt the near-term growth prospects for companies like Galaxy Digital,” recommending that investors with a low appetite for risk probably want to stay away.

BMO Capital Bull Case

On April 3, Galaxy Digital saw its 12-month price target raised to $35 from $32 by BMO Capital. The banking and investment company also reiterated its outperform rating on the stock after it released earnings. 

According to The Deep Dive, BMO stated it is pleased with “high growth in the operating business, stronger trading performance relative to the market, and continued upside from private investments.”

In addition, results from the fourth quarter and full-year also saw improvement in its cryptocurrency market cap and its book value grew faster than the market, BMO notes. 

Pros and Cons of Galaxy Digital

Pros

Cryptocurrency: One of the biggest benefits to Galaxy Digital includes its involvement in this rapidly developing market. Crypto markets have faced their fair share of doubt among investors, although the markets have held firm and continued to grow despite the scrutiny.

Banking Industry: Galaxy Digital facilitated Goldman Sachs transactions in the crypto space. Banks and investment firms have been using and adopting the crypto market more, which has resulted in significant benefits for companies such as Galaxy Digital.

Diversification: With many investments in cryptocurrency and blockchain-related companies and its asset management, trading and banking divisions, the company is in an excellent place to benefit from the overall growth.

Cons

Volatility: With Galaxy Digital’s stock price heavily influenced by the crypto market, it can be highly volatile.

Share Price: The company had an excellent start to 2021. However, it's been unable to sustain highs it achieves, and excess gains are followed by significant drops. Furthermore, its delay in the acquisition of BitGo has negatively impacted its share price. 

Is Galaxy Digital a Buy, Sell or Hold?

Galaxy Digital has a bright future in crypto. The crypto industry comes with a certain level of uncertainty, but there is a lot to like about Galaxy Digital. In addition, recent earnings showed tremendous growth.

The company has become a leading player in the crypto space, investing in crypto and blockchain-related companies, putting it in a great position to benefit from the segment as a whole via asset management, banking and trading.

The crypto space faces regulatory risks. Still, it is expected that digital asset adoption will continue to rise, and as a result, Galaxy Digital will benefit. Therefore, a Buy rating seems appropriate. 

Frequently Asked Questions

Q

What does Galaxy Digital do?

A

Galaxy Digital is a technology-driven financial service and investment management firm. It offers clients financial solutions in the digital assets industry.

Q

Who owns Galaxy Digital?

A

Michael Novogratz is the founder and CEO of Galaxy Digital. Novogratz was a former partner and president of Fortress Investment Group and spent 11 years at Goldman Sachs.