Brokerage firm BTIG rated shares of crypto firm Galaxy Digital Holdings (TSE: GLXY) a “buy” with a price target of C$31 in research report published Thursday. The stock is trading at C$22 as of press time.

Galaxy Digital is a merchant bank that offers multiple cryptocurrency-focused services for institutional investors. The firm recently bought crypto custodian BitGo for a whopping $1.2 billion.

As more crypto-native firms go public, stock analysis is becoming a more prominent – albeit new – part of the crypto landscape. Equities analysts are quickly adapting.

Galaxy’s pending acquisition of BitGo is expected to close in the fourth quarter of 2021 and would provide a key piece in the prime brokerage platform Galaxy is seeking to build, the report, authored by BTIG’s Mark Palmer and Andrew Harte, notes.

Galaxy’s platform includes principal investing, asset management, trading, advisory services, and bitcoin mining. As of April 30, GLXY had $1.6 billion in assets under management (AUM), according to the report. 

BTIG’s CAD$31 price target is based on analysis that includes the net asset value of the company’s principal investments and the operating business revenue. It excludes realized gains on digital assets and investments.

BTIG views Galaxy’s partnership with Morgan Stanley as a way for the company to boost its AUM and an important endorsement of crypto as an emerging asset class.

Under the risks to its valuation, BTIG lists a sustained decline in crypto prices as negatively impacting Galaxy’s AUM. Cybersecurity risks, credit risks, competition, regulatory risks and “key man” risks – citing charismatic CEO Michael Novogratz – are also noted.

Galaxy Digital is in the process of also listing its stock on U.S. markets.