Could Galaxy Digital Double Again in 2022?

Shares of Galaxy are up 112% in the last year, more than doubling in that time. Could they double again?

Cryptocurrency: it’s one of the top searched topics for investors right now. And it’s clear why. Companies have more than doubled in the last few years, while others play catch up. And one of those companies includes Galaxy Digital Holdings (TSX: GLXY).

Shares of Galaxy are up 112% in the last year, more than doubling in that time. Yet they’re a significant way from their 52-week highs of $46.70 — down 56% since that time.

Not just Galaxy

Cryptocurrency has been dropping along with tech stocks for a few months now. The entire sector has become far too risky for investors to consider. Inflation and interest rates continue to rise, and that means collecting returns and finding a safe place to hide cash.

While I wouldn’t recommend putting everything in cryptocurrency in the first place, as some have, I wouldn’t recommend selling it all either. In fact, now could be a great time to get in on the industry if you believe it’s set to rise over the long term.

Because that’s the key. Cryptocurrency companies are still an investment. And investments are supposed to mean holding on to them for the long term. So, yes, Galaxy and others are down right now. But long-term investors may want to see this time for what it is: an opportunity.

Analysts agree

At least that’s what analysts say. In fact, over the last year, analysts continue to weigh in on this company, and they’re downright impressed. That’s because Galaxy isn’t like holding a blockchain company, a digital asset miner, or even a cryptocurrency itself. Instead, you can have your hands in every pie.

Galaxy, instead, is an asset management firm. It operates in the field of digital assets, cryptocurrency, and blockchain technology. Therefore, you have access to it all. It can buy, sell, lend, and borrow crypto, but it also manages third-party capital. It also directly invests in Bitcoin miners, for example. This creates an incredible portfolio for those wanting in on digital currency but with less risk.

Now’s the time

The reason analysts may recommend now as a buy is because Galaxy is going through a pullback. And there is a reason why that happened recently. The company reported its assets under management (AUM) for December, and they came in lower than the month before.

Why did this happen? Bitcoin and Ethereum, along with other cryptos, pulled back. making these assets worth less. Therefore, Galaxy’s AUM dropped too. But once the cryptos rebound, Galaxy will as well.

And then there’s the main question: could it double again? In short, yes. At least that’s the consensus among analysts. The company has consensus target price of $44 as of writing. That’s 120% higher than where it trades today. So, while there are some risky options out there in crypto world, Galaxy doesn’t seem to be one of them for long-term investors.

Fool contributor Amy Legate-Wolfe owns Galaxy Digital Holdings Ltd. The Motley Fool owns and recommends Bitcoin and Ethereum.

More on Investing

young adult uses credit card to shop online
Tech Stocks

Is Shopify Stock Too Expensive? A Great Quarter Meets a Sky-High Valuation

Shopify's latest quarter was impressive, but its expensive valuation could make investors think twice before buying.

Read more »

Person holding a smartphone with a stock chart on screen
Dividend Stocks

For BCE vs. Enbridge, a 5.7% Yield vs. 5.9% (And the One I’d Prefer for Income)

Both BCE and Enbridge offer attractive income, but BCE is a higher-risk turnaround opportunity, whereas Enbridge offers a more predictable…

Read more »

man shops in a drugstore
Dividend Stocks

How Much to Invest in RioCan for $300 a Month in Dividends

How much should you invest in RioCan for $300 a month in dividends? Explore its retail business, monthly payout and…

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

Telus Dividend Safety: Is the Stock Still Worth Buying for Income?

Explore the latest insights on Telus dividend amid a challenging earnings report and management's new Transformation Strategy.

Read more »

Quality Control Inspectors at Waste Management Facility
Stocks for Beginners

Would I Buy Waste Connections for a 10-Year TFSA? Here’s My Case

Waste Connections earns my interest for a 10-year TFSA, with recurring demand and cash generation balanced against a demanding valuation.

Read more »

AI image of a face with chips
Tech Stocks

Thomson Reuters Sells the Majority of Its Print Business as It Bets on AI: Can the Suffering Stock Bounce Back?

Learn how Thomson Reuters recovered from a 62% dip and what the future holds for its major revenue segments.

Read more »

voice-recognition-talking-to-a-smartphone
Dividend Stocks

BCE Just Reported: What $10,000 Could Earn You in Dividends Today

BCE is yielding a very generous 5.2%, as the company's telecom business improves and long-term investments drive growth.

Read more »

Transparent umbrella under heavy rain against water drops splash background. Rainy weather concept.
Dividend Stocks

Is Intact’s Rough Quarter a Blip or the New Normal for Canadian Insurers?

Intact reported $660 million in pre-tax catastrophe losses during the quarter, which dragged its net operating income per share lower.

Read more »