Galaxy Digital: Emerging Stronger Following Crypto Reset

SummaryGalaxy Digital has been pressured by the deep selloff in crypto over the past year.The company maintains overall positive fundamentals, including a solid balance sheet and a portfolio of high-growth investments in the sector.We like the stock that is well-positioned to rebound as the market sentiment stabilizes.Galaxy Digital Holdings Ltd. (BRPHF) is a financial services leader in digital assets and blockchain technologies. The company captured the massive growth in the space over the last several years across a diversified operation that includes Trading, Asset Management, and Investment Banking. While 2021 was a record year for the company, the environment more recently has been defined by the sharp correction in crypto and broader macro headwinds. Galaxy Digital shares are off more than 70% over the past year, highlighting the extreme volatility.We last covered the stock back in 2021 with an upbeat view while noting that the trends in cryptocurrencies were the main risk to consider. A lot has happened over the period, and we reiterate a positive long-term outlook, recognizing some reset expectations. The key to recognizing is that the opportunities in Web3 like payments, Defi, and the metaverse are still in the early stages of adoption. Galaxy Digital can benefit from themes that go beyond any single cryptocurrency. A planned U.S. listing on Nasdaq compared to its current primary trading on the Toronto Stock Exchange...