Shares of Galaxy Digital Holdings (TSE:GLXY) are trading higher today after the digital asset bank acquired CryptoManufaktur LLC, a company that runs blockchain nodes, for an undisclosed amount. With this deal, CryptoManufaktur’s founder Thorsten Behrens and his three-person engineering team are joining Galaxy’s Blockchain Infrastructure team, which handles staking and validator services for various digital asset platforms.
This move boosts Galaxy’s tech support for key projects and strengthens its Oracle Data as a Service offering. CryptoManufaktur brings in about $1 billion in Ethereum (ETH-USD) assets under stake and will increase Galaxy’s total to $3.3 billion. Zane Glauber, head of Galaxy’s Blockchain Infrastructure team, said this acquisition is a big step in expanding Galaxy’s blockchain capabilities.
Is GLXY Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GLXY stock based on five Buys assigned in the past three months, as indicated by the graphic below. After a 173% rally in its share price over the past year, the average GLXY price target of C$20 per share implies 16.65% upside potential.
Is ETH Going to Boom?
When using TipRanks’ technical analysis tool, the indicators seem to point to a positive outlook for Ethereum. Indeed, the summary section pictured below shows that 13 indicators are Bullish, compared to four Neutral and five Bearish indicators.
Still, Ethereum has greatly outperformed both the SPDR S&P 500 ETF Trust (SPY) and Bitcoin (BTC-USD) since 2019, according to data from TipRanks. In fact, $10,000 invested in Ethereum would be worth almost $242K today compared to over $167K for Bitcoin and more than $22K for SPY, as per the image below. Although past performance isn’t indicative of future results, the fact that ETH is smaller than Bitcoin does provide it with the potential to continue outperforming.
