Citi sees 41% upside for Galaxy Digital as tokenized assets draw interest

Citi has upgraded Galaxy Digital stock from neutral to buy, raising its price target from $26 to $28 following a period where the company's shares lost nearly half their value over the past year. This shift in outlook is driven by a more positive sentiment toward digital assets and the growing importance of infrastructure supporting tokenization and stablecoins. Citi analyst Peter Christiansen highlighted that Galaxy’s pivot toward an infrastructure-focused business model, particularly its AI data center operations at Helios I, serves as a key catalyst for future earnings growth. The bank anticipates that the potential announcement of a tenant for the Helios II facility within the next six months will further improve long-term visibility. While the broader crypto market faced significant liquidations in October 2025, institutional analysts remain largely bullish, with 14 out of 16 covering analysts currently rating the stock as a buy or strong buy. The company is expected to report its Q3 2026 earnings on October 27, 2026. This development underscores the increasing institutional focus on the underlying infrastructure required to support the expanding RWA and tokenization ecosystem.