Galaxy Digital: From Bitcoin’s Past to AI’s Future – Why Now Is the Time to Buy

The cryptocurrency winter of 2022 left many bitcoin miners in ruins, but
(GLXY) saw an opportunity. Its acquisition of the Helios data center complex—a once-bitcoin-focused facility—has become the linchpin of a bold pivot to artificial intelligence (AI) infrastructure. Today, this strategic move is positioning Galaxy to capture a $32 billion equity upside, as highlighted by Rittenhouse Research, while competitors remain shackled to volatile crypto markets. Here’s why now is the moment to buy.
The Strategic Pivot: Bitcoin’s Graveyard Becomes AI’s Launchpad
Galaxy’s Helios campus, originally purchased for bitcoin mining, is now a fortress of AI infrastructure. Rittenhouse’s bull case hinges on Helios’s transition to hosting hyperscalers like CoreWeave, a major AI cloud provider. The facility’s 1.7 gigawatt capacity, secured through long-term leases, offers $1.7 billion in projected EBITDA—a stark contrast to the rollercoaster of bitcoin mining, where revenues collapsed 50% during the 2023 halving event.
The shift isn’t just about escaping crypto’s volatility. Helios’s leases with CoreWeave and others are 15-year, triple-net contracts that lock in recurring revenue with minimal capital expenditure. Unlike bitcoin’s boom-and-bust cycles, AI’s compute demand is growing exponentially. “Galaxy isn’t just a crypto company anymore—it’s a landlord to the future of tech,” says Rittenhouse analyst Adam Kline.
The CoreWeave Catalyst: Institutional Backing, Not a Fly-By-Night Bet
Critics have questioned CoreWeave’s creditworthiness, but Rittenhouse’s analysis paints a different picture. CoreWeave’s 96% of revenue comes from multi-year contracts with Fortune 500 clients like Microsoft and IBM, and its debt is structured as delayed-draw term loans—only coming due as it secures new customer agreements. This means default risk is minimal.
Galaxy’s Helios deal with CoreWeave alone could generate $9 billion in revenue over 15 years, with Phase I of the lease (133 MW) kicking in by early 2026 and Phase II (260 MW) by 2027. The EBITDA margins here are staggering: 90%, thanks to fixed-cost leases. This is the kind of cash flow that transforms companies—imagine Amazon’s AWS but for AI.
The $1.8 Billion Cash Buffer: A Safety Net in Turbulent Markets
Galaxy’s balance sheet is its secret weapon. With $1.8 billion in net cash and investments, it can weather crypto market swings while scaling AI infrastructure. Competitors like Riot Platforms and Cipher Mining, still tied to Bitcoin, face skepticism from hyperscalers who view them as risky partners. Galaxy, by contrast, is now a pure-play AI infrastructure play, with no operational ties to crypto mining.
Why the Market Underestimates GLXY’s Potential
Bearish sentiment persists because investors still see Galaxy through the lens of its crypto past. But the data tells a different story:
- Helios’s scalability: 40 potential new U.S. data center sites in the pipeline, each 300–500 MW.
- Debt-friendly terms: Project financing at a 17% fixed NOI yield, attracting banks eager to fund AI infrastructure.
- NASDAQ uplisting: GLXY’s shift to Nasdaq in May 2025 improves liquidity and investor access, signaling confidence in its AI pivot.
Risks? Yes, but Overblown
- Regulatory risk: While crypto regulations loom, Helios’s AI business is far less exposed.
- Near-term losses: Q1 2025’s $57M impairment charge (from shutting down mining) is a one-time hit. Q2’s projected $160–170M operating income signals stabilization.
The Bottom Line: A Rare Growth Opportunity in a Stagnant Sector
In a market starved for growth, Galaxy offers a rare combination: a low-risk, high-margin AI infrastructure asset with a catalyst-driven valuation reset. Rittenhouse’s $32B equity thesis isn’t a stretch—it’s a math problem. With shares trading at a fraction of that target and the NASDAQ uplisting unlocking new investor demand, this is the moment to buy.
The crypto winter is over. The AI spring is here—and Galaxy Digital is the first to bloom.
Act now. The future of compute is being built in West Texas, and Galaxy holds the keys.
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