Crypto financial services company Galaxy Digital is growing its business in a thoughtful and methodical manner, broker Canaccord Genuity said in a report after the company released its Q1 results on Tuesday, and the company's opportunities and competitive positioning remain compelling, even though the regulatory backdrop remains challenging.
The company said its net profit rose 40% from the previous quarter to $422 million, and the company expects the positive momentum to continue. "We will see solid progress in growth and maturity across the company's three operating segments in the coming quarters," wrote analysts led by Joseph Vafi.
The report noted that Galaxy Trading's total number of counterparties in the first quarter increased to 1,161 from 1,052 in the fourth quarter of last year, and counterparty trading revenue increased 79% to $66 million.
Canaccord has a buy rating on Galaxy shares with a target price of 17 Canadian dollars. The stock closed at 12.41 Canadian dollars on Tuesday.
Yesterday, Galaxy Digital released its latest financial statements showing that the company's revenue and profits increased significantly in the first quarter, thanks to the growth of its mining business revenue, mainly including:
1. Galaxy Digital's net profit in the first quarter increased to US$421.7 million ($1.23 per share), an increase of about 214% over the same period last year;
2. The company's revenue increased from US$146.7 million in the same period last year to US$259.7 million;
3. According to the company's business scope, Galaxy's mining business revenue was US$31.5 million, which was the driving force behind the company's overall revenue growth in the first quarter.