We are still holding and committed to Galaxy Digital shares for a double in the price from the current level.
The company survived the 2022 decline / crypto winter – technically called a stage 4 decline. Many companies in this industry did not survive. Galaxy emerged stronger, better and quicker. Battle tested. The stock price based from October 2022 to October 2023. This is called the stage one basing period. Link to description of Stage analysis.
The Galaxy’s price began a new cycle higher in late 2023 – this is considered a stage two move – the rally phase of a stock price cycle. Galaxy’s price is still in the stage two rally phase. Galaxy is consolidating its price prior to what I believe will be a continuation of the rally phase. Hopefully it results in a higher price similar to 2021. Maybe higher. Galaxy is a much bigger and stronger company than it was in 2021, but one never knows. Certainly, blockchain is changing the financial world. The SWIFT system, Visa Card, MasterCard, Western Union and Central banks outside the USA have all embraced crypto in their internal money transfer processes. Galaxy has a place in this world as the leading global institutional banker for blockchain and crypto activities. Even Jamie Diamond of JP Morgan – while he still says crypto is a bad thing – is rushing to install crypto into the JP morgan operating infrastructure. Is Diamond being “political,” or “dishonest with the public” or trying to capture market share after the horse has left the barn? I don’t know. As with any situation – watch what they do, not what they say. Crypto and Blockchain are changing the money transfer and payments world. Soon it will change the legal world of property and titles of ownership. Galaxy gives us a chain at the table.
Galaxy Digital-Owned Crypto Custody Specialist GK8 Unveils Tokenization Wizard
The first client to use the tool will be a partnership between asset manager DWS, Flow Traders and Galaxy to manage a fully collateralized euro-denominated stablecoin, GK8 said.
Demand for tokenization has risen sharply, with many traditional finance firms getting on board. Among them, asset management giant BlackRock, which recently unveiled its BUIDL platform in association with Securitize and others.
Link to source here. Tokenization is projected to be a $4 trillion dollar industry by 2030. Everything of value is projected to be Tokenized. Chief among assets being tokenized are stocks, bonds, commodities and real estate.
Stage three chart pattern is the topping phase. 2021 was the most recent topping phase. The next topping phase for crypto and blockchain is projected to be in 2025. Don’t expect a smooth ride – it never is.
Yes, we could sell Galaxy and select another stage one stock that appears to be entering stage two rally phase. On the other hand, Capital Gain Tax is a factor. We have, in related accounts, tax managed losses. In most situations we own more Galaxy than before the 2022 decline and have unrealized gains in the Galaxy position. In Galaxy, we own a recognized industry leader in a rapid growth industry. The crypto cycle appears to have more time to run – maybe a year or so.
Earnings are out on the 14th of May for Galaxy. They will be very good from all indications. Tax law has been changed to the benefit of owners of crypto. Perhaps some galaxy holders (institutions) will use good news to exit the position. It is always an adventure. Good news is still good news.
Galaxy is still a core holding for LOTM. Yes, this is both cheerleading and reinforcing our explanation to you the reader, on why we are owners of Galaxy.
LOTM Research & Consulting Service
* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
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