PANews reported on February 5th that, according to a recent report from Benchmark analysts, despite Galaxy Digital's stock price plummeting due to a $482 million loss in the fourth quarter, the market may be overlooking its potential in long-term catalysts such as AI data centers and US encryption regulatory legislation. Galaxy's current stock price is around $21, and Benchmark maintains its "buy" rating with a target price of $57, projecting a 170% upside.

Galaxy CEO Mike Novogratz stated during the earnings call that there is a 75%-80% chance of the passage of US crypto market legislation, which could attract more institutional capital to the market. Furthermore, the company plans to announce more institutional partnerships and infrastructure expansion plans in the coming quarters, including the expansion of its on-chain lending market.

Benchmark also noted that Galaxy's Helios data center in Texas is an undervalued asset. The center boasts over 1.6 gigawatts of approved power capacity and plans to begin generating revenue this year through a leasing agreement with AI cloud provider CoreWeave. Analysts believe the Helios data center alone could be valued at more than Galaxy's current market capitalization.

Despite a decline in fourth-quarter results, Galaxy's lending business continued to grow, with total loans reaching $1.8 billion. The company also has $2.6 billion in cash and stablecoin reserves, providing ample funding for its expansion in crypto infrastructure and AI.