Investor concerns about Galaxy Digital (GLXY.TO) being subject to significant losses given its exposure to Terra’s LUNA token are “clearly unwarranted,” BTIG equity research analyst Mark Palmer told clients in a note Thursday.

Shares of Galaxy have plunged more than 40% this week and were down over 20% on Wednesday. They were falling 1.6% to US$8.02 on Thursday.

In its recent management discussion and analysis filing for the quarter ending March 31, Galaxy said the largest contributor in the quarter to its $355 million in net realized gains on its digital assets came from sales of LUNA. Galaxy had previously said in its fourth-quarter earnings release that it held $407.6 million worth of LUNA as of Dec. 31.

“Our takeaway from GLXY’s disclosures regarding its LUNA exposure is that it appears that the company had sold all or most of its position at a healthy gain during 1Q22, reflecting the token’s strong appreciation during 2021,” Palmer wrote.

Galaxy did not immediately respond to a request for comment.

Algorithmic stablecoin terraUSD (UST) recently lost its 1:1 peg to the U.S. dollar, while Terra’s native LUNA token extended its precipitous decline this week.

BTIG reiterated a buy rating on Galaxy with a C$37 ($28) price target.

Galaxy said earlier this week it had won approval from its board to buy back up to 10% of shares in light of current market conditions.