Galaxy Digital’s Strategic Pivot to AI Data Centers: An Undervalued High-Growth Infrastructure Play in the AI Boom

Galaxy Digital (GLXY) is redefining its role in the digital asset ecosystem by pivoting aggressively into AI data centers, positioning itself as a critical player in the $375 billion global AI infrastructure market of 2025 [1]. This strategic shift, underpinned by $1.4 billion in project financing for its Helios AI data center in Texas, reflects a bold bet on the convergence of blockchain, high-performance computing (HPC), and institutional-grade digital asset solutions [1]. With a modular, scalable approach and partnerships with industry leaders like CoreWeave and Soluna Holdings, Galaxy is not only addressing the surging demand for AI compute power but also leveraging its blockchain expertise to tokenize infrastructure assets, creating a new paradigm for capital deployment [5].

A Blockchain-Driven Infrastructure Play

Galaxy’s Helios campus, initially designed for 800 MW of power capacity with plans to scale to 3.5 GW, is a cornerstone of its AI strategy. The project’s blockchain-integrated financing model—combining tokenized assets and Nasdaq-listed shares—demonstrates a unique ability to attract institutional capital while aligning with the decentralized ethos of the digital asset sector [5]. This innovation is further reinforced by a 15-year lease with CoreWeave for 526 MW of capacity, ensuring a stable revenue stream and validating the long-term viability of AI-driven infrastructure [5]. CoreWeave’s additional commitment to host 260 MW of critical IT load at Helios underscores the strategic value of this partnership, as CoreWeave becomes the largest tenant at the campus [6].

Internationally, Galaxy’s collaboration with BDACS, a leading Korean digital asset custodian, expands its reach into Asia’s institutional market. By offering prime services, ETF infrastructure, and stablecoin research, Galaxy is tapping into a region where digital asset adoption is accelerating, further diversifying its revenue streams [4]. Meanwhile, the relocation of 48 MW of Bitcoin mining operations to Soluna’s Texas facility highlights Galaxy’s flexibility in reallocating resources to prioritize AI and HPC [3]. These moves collectively position Galaxy as a hybrid infrastructure provider, bridging the gap between legacy data center operators and next-generation AI-focused firms.

Financial Metrics Suggest Undervaluation

Despite its strategic momentum, Galaxy’s stock (GLXY) trades at a significant discount relative to its peers. The company’s price-to-sales (P/S) ratio of 1.3x is far below the 7.2x average for U.S. capital markets firms and the 5.7x average for Canadian counterparts [1]. This discrepancy suggests the market is underappreciating Galaxy’s potential to capitalize on the AI infrastructure boom, particularly as it transitions from a digital asset custodian to a diversified infrastructure provider. Analysts have raised their FY2025 EPS estimate to $0.42, maintaining a “Strong-Buy” rating, while the average price target of $36.67 implies a 56% upside [3].

Institutional confidence further supports this thesis. Over $632 million in inflows from 78 institutional investors and hedge funds, including Balyasny Asset Management and Invesco, highlights the sector’s recognition of Galaxy’s strategic pivot [4]. Retail investors, who hold 69% of the company’s shares, also signal a grassroots belief in its long-term potential [1]. However, the stock’s 7.6% premarket decline following Q2 2025 earnings—despite a $299 million adjusted gross profit—reflects lingering macroeconomic uncertainties [6]. This volatility presents an opportunity for investors who recognize the disconnect between short-term sentiment and the company’s structural growth drivers.

The AI Infrastructure Megatrend

Galaxy’s pivot aligns with a broader industry transformation. UBS estimates global AI infrastructure spending will reach $500 billion in 2026, driven by hyperscalers and private equity firms [2]. Brookfield Asset Management’s projection of $7 trillion in AI infrastructure investment over the next decade underscores the scale of this opportunity [2]. Galaxy’s Helios campus, with its blockchain-enabled financing and strategic tenant partnerships, is uniquely positioned to capture a share of this growth. The company’s Q2 2025 results—$9 billion in assets under management and a 27% quarter-over-quarter increase in infrastructure assets—demonstrate its ability to scale rapidly in this environment [3].

Risks and Mitigants

Critics may point to Galaxy’s unprofitable EBITDA and the challenges of scaling AI infrastructure in a market still grappling with power distribution and hardware evolution [3]. However, the company’s modular approach—allowing incremental capacity expansion—and its partnerships with energy providers like Soluna mitigate these risks. Additionally, the tokenization of infrastructure assets could unlock new liquidity channels, reducing reliance on traditional financing [5].

Conclusion

Galaxy Digital’s strategic pivot to AI data centers represents a compelling case of undervaluation in a high-growth sector. By combining blockchain innovation, institutional-grade infrastructure, and a forward-looking approach to capital deployment, the company is poised to benefit from the AI infrastructure megatrend. With a P/S ratio far below industry averages and a “Strong-Buy” analyst consensus, Galaxy offers investors a rare opportunity to participate in a transformational shift at a discount to its intrinsic value.

Source:
[1] Galaxy Closes $1.4 Billion Project Financing Facility to Accelerate Helios AI Datacenter Development [https://investor.galaxy.com/news/news-details/2025/Galaxy-Closes-1-4-Billion-Project-Financing-Facility-to-Accelerate-Helios-AI-Datacenter-Development/default.aspx]
[2] The A.I. Spending Frenzy Is Propping Up the Real ... [https://www.nytimes.com/2025/08/27/business/economy/ai-investment-economic-growth.html]
[3] Galaxy Digital (GLXY) Stock Forecast & Analyst Price Targets [https://stockanalysis.com/stocks/glxy/forecast/]
[4] Institutional Ownership Changes (13F Filings) for Galaxy Digital (NASDAQ:GLXY) [https://www.marketbeat.com/stocks/NASDAQ/GLXY/institutional-ownership/]
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