Galaxy Digital's AI Infrastructure Pivot: A Catalyst for Undervalued Growth
3min readThe cryptocurrency winter has forced many crypto firms to pivot—or perish.
(NASDAQ: GLXY), however, is not just surviving—it's reinventing. By transitioning its Helios data center in West Texas from cryptocurrency mining to artificial intelligence (AI) and high-performance computing (HPC) infrastructure, Galaxy has positioned itself at the intersection of two megatrends: the AI revolution and the demand for scalable computing power. Its recent $29 million share offering—strategically timed to fuel this pivot—could unlock a trove of undervalued growth assets.
The Strategic Reallocation: From Crypto Mining to AI Infrastructure
Galaxy's move to reorient Helios from crypto mining to AI infrastructure is a masterstroke. In late 2024, the company signed a 15-year lease with CoreWeave, a Nasdaq-listed AI cloud provider, to deploy 133MW of critical IT load by mid-2026. This was swiftly expanded in April . 2025 to 260MW (Phase II), bringing total committed capacity to 393MW by 2027. The economics here are compelling: CoreWeave's fixed-rate leases guarantee Galaxy 90%+ EBITDA margins, with $13.5 billion in projected revenue over the lease term.
The Helios campus, originally acquired for $65 million in 2022, now sits atop an 800MW approved power base—with 1.7GW more under review. This scalability positions Galaxy to capitalize on the surging demand for AI compute, a market projected to grow to $200 billion by 2030.
The Share Offering: Fueling Growth Without Overleveraging
Galaxy's May 2025 share offering—24.15 million shares sold by the company and 4.85 million by existing investors—was a deft capital-raising move. Proceeds will be used to acquire limited partnership units in its operating subsidiary (GDH LP), which will fund infrastructure upgrades and general corporate needs. Crucially, the offering avoided debt issuance, preserving balance sheet flexibility.
The underwritten structure, led by Goldman Sachs, Jefferies, and Morgan Stanley, signals institutional confidence. While the exact pricing remains undisclosed, the greenshoe option (4.35 million additional shares) suggests potential for further capitalization.
Why This Is an Undervalued Growth Opportunity
- Low-Cost, High-Margin Cash Cows: The CoreWeave leases lock in long-term, fixed-rate revenue streams with minimal variable costs. At 90% EBITDA margins, these contracts are recession-resistant.
- Strategic Asset Base: Helios's 393MW capacity is just the start. With 1.7GW more under review, Galaxy has a pipeline to scale as AI demand explodes.
- Debt-Free Growth: Post-offering, Galaxy holds $1.1 billion in cash and stablecoins—more than enough to fund near-term needs without dilution.
- Nasdaq Visibility: Its May 2025 listing on Nasdaq enhances liquidity and attracts institutional investors, a stark contrast to its former over-the-counter trading.
Risks? Yes. But the Upside Outweighs Them
Critics will point to execution risks—delays in data center builds or a slowdown in AI adoption. Yet Galaxy's partnership with CoreWeave mitigates these: the hyperscaler's financial commitment includes a $1.5 million/MW subsidy in early years, reducing upfront capital needs. Meanwhile, the AI compute market's growth trajectory is undeniable, with giants like Microsoft and Alphabet already scrambling to meet demand.
The Call to Action: Buy Before the AI Surge
Galaxy Digital is a classic value play. Its shift to AI infrastructure has yet to be fully priced into its stock, which trades at a fraction of its peers. With a $2.2 billion equity base post-reorganization and a multi-billion-dollar revenue runway, GLXY offers a rare combination of growth and stability.
For investors: this is a buy now, hold forever scenario. The AI revolution isn't a fad—it's the new electricity. Galaxy's Helios campus is the power plant.
Act now before the market catches up.
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