Galaxy Digital Stock Pulls Back After Rally as It Seeks Bank Charter

Galaxy Digital Inc. (NASDAQ:GLXY) shares are trading lower Thursday after the company applied for a national trust bank charter, possibly reflecting profit-taking after the stock rose about 11% Wednesday following analyst notes.

• Galaxy stock is taking a hit today. Why is GLXY stock dropping?

Galaxy Applies to the OCC for a National Trust Bank Charter

Galaxy’s subsidiary, Galaxy Digital LP, submitted an application to the Office of the Comptroller of the Currency to establish Galaxy National Bank, a proposed national trust bank headquartered in New York. If approved, the bank would operate as a federally regulated trust institution under OCC supervision, providing Galaxy’s custody, trading and staking services for digital assets, along with fiduciary investment advisory services. It would serve clients across the country under a single federal framework.

The application remains subject to OCC approval. It builds on more than 50 licenses Galaxy holds in the U.S., Europe and Asia, including SEC-registered broker-dealer subsidiaries, a CFTC-registered swap dealer subsidiary and a UK subsidiary authorized by the Financial Conduct Authority. The New York State Department of Financial Services recently granted a Galaxy subsidiary a BitLicense and a Money Transmission License.

"A national trust charter would be an important next step, allowing us to bring more of our services under a single federal framework and expand how we serve clients as adoption accelerates," said Mike Novogratz, Galaxy’s founder and CEO.

Galaxy Fell After a Strong Rally That Followed Its Earnings and Analyst Notes

Galaxy shares had rallied after the company reported third-quarter results Tuesday, and several analysts updated their ratings Wednesday. Compass Point kept a Buy rating but lowered its price target to $30 from $36, citing a higher discount rate for Galaxy’s CoreWeave contract, while noting that Galaxy’s third-quarter EBITDA exceeded its expectations. H.C. Wainwright kept a Buy rating and cut its target to $36 from $40, and Canaccord Genuity maintained a Buy rating with a $50 target. Compass Point said recent share price weakness reflects macro-related factors. The stock remains down about 58% over the past year, according to Investing.com.

Galaxy Shares Fall

GLXY Price Action: At the time of publication, Galaxy shares are trading 4.98% lower at $18.15, according to data from Benzinga Pro.

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