Galaxy Digital’s stock plummeted 40%, but LUNA-related concerns are unwarranted…
Given the current situation of Terra (LUNA), many people believe that the 40% decrease in Galaxy Digital’s stock price and a significant loss is due to exposure to LUNA. However, BTIG equity research analyst Mark Palmer thinks this is unwarranted.
Why should not worry about the relationship between Galaxy Digital and Terra (LUNA)
Shares of Galaxy have fallen more than 40% this week. During a recent management discussion, Galaxy said the company’s biggest contributor of the quarter, with $355 million in net income realized on its digital assets, came from the sale of LUNA. Earlier, Galaxy said in its Q4 earnings release that it holds $407.6 million worth of LUNA as of December 31.
TerraUSD (UST) recently lost 1:1 against the US dollar, while Terra’s native LUNA token extended its rapid decline this week. BTIG reiterates a buy rating on Galaxy with a C$37 ($28) price target.
Earlier this week, Galaxy said it had received board approval to buy back up to 10% of the shares under current market conditions.
According to an unconfirmed source, the family of Terraform Labs CEO Do Kwon is being threatened and has had to ask for police protection. Many crypto investors around the world have lost their assets in the past few days because of the collapse of LUNA – UST.
I want to emphasize that violence is never an answer and there have been several incidents in Korea before. But such always have been caught eventually even if they flew abroad.
— Doo | StableNode @GoblinTown (@DooWanNam) May 13, 2022
Meanwhile, the community pointed out that funds invested in Terra (LUNA) and UST are still keeping “an eerie silence.” Many people have criticized those funds for deliberately aiding the LUNA “bubble,” knowing the risks of the model but still investing and drawing people in, and now “washed hands” after exiting the position.
- Terraform Labs Has Said The Terra Blockchain Has Been Halted
- CEO Terra Do Kwon Was One Of The Co-Founders Behind The Failed Stablecoin Basis Cash