GLXY's Surge: Is Galaxy the Main Character in the AI Power Crunch?

The market's latest obsession is clear. Galaxy Digital's stock surged 13.48 percent to close at $31.99 on Thursday, fueled by a single, massive headline: approval from Texas's grid operator. The catalyst was ERCOT granting approval for an additional 830MW of computing capacity at its Helios campus in West Texas. This isn't just a routine expansion; it's a doubling down on the AI infrastructure play.

The scale is staggering. This new approval brings Galaxy's total approved and utility-contracted power capacity at Helios to over 1.6 gigawatts. In practical terms, that means the campus's available power has effectively doubled. For a company pivoting hard into high-performance computing, this is the kind of infrastructure milestone that moves the needle. CEO Mike Novogratz called it a "watershed moment for Galaxy," a sentiment that clearly resonated with investors.

The approval is the latest step in a rapid build-out. The campus, which started operations in 2022, is already under construction and on track to deliver its initial power to major client CoreWeave in early 2026. The new capacity solidifies Galaxy's position as a key enabler in the AI power crunch, providing the massive, reliable electricity that leading AI firms demand. This move directly supports the company's strategic shift away from crypto mining and toward becoming a pure-play data center infrastructure provider.

The Trending Topic: AI Data Center Power Constraints

The market's attention is laser-focused on a single, physical bottleneck. While the headline was Galaxy's approval, the real story is the viral sentiment around the unprecedented demand for high-density, AI-ready data center capacity in Texas. Search volume for terms like "AI data center power" and "Texas data center expansion" has spiked in recent weeks, signaling that investors are connecting the dots between digital ambitions and physical energy needs.

This is the core, trending theme. The AI boom isn't just about software and chips; it's a massive, tangible demand for electricity. As compute returns to infrastructure and energy, companies that control the power supply are becoming the main characters. Galaxy's 1.6 GW milestone isn't an isolated event; it's a direct response to this energy crunch. The approval shows the company is positioning itself at the epicenter of a structural shift where data center capacity is now defined by its power density and reliability.

The setup is clear. Major AI firms like CoreWeave are locking in massive, long-term power contracts because they need the infrastructure to run their models. Galaxy's ability to secure over 800MW in new grid capacity in a single move demonstrates it is a key enabler in this race. The company's pivot away from crypto mining toward becoming a pure-play data center infrastructure provider is a strategic bet on this exact convergence. When the market is googling "Texas data center expansion," Galaxy's stock is the ticker that delivers the physical answer.

Trading the Headline: Is GLXY the Main Character?

The market is clearly treating Galaxy Digital as the main character in the AI power story. The stock's momentum is undeniable, having gained 42.1% over the past four weeks following the ERCOT approval. That surge wasn't a whisper; it was a roar, with shares hitting $33.64 mid-day on Friday. The elevated trading volume on the surge day, while down from the average, still signals significant market attention and conviction.

Wall Street's consensus view leans bullish, with a mean price target of $48.63 implying roughly 52% upside from recent levels. This optimism is supported by strong earnings estimate revisions, which empirical research shows often precede stock gains. However, the wide range of targets-from a low of $24.00 to a high of $60.00-highlights a crowded narrative with plenty of disagreement. The standard deviation of $9.06 underscores that analysts are far from unanimous, a reminder that consensus can be a fickle guide.

So, is GLXY the primary beneficiary? The evidence suggests it's a leading player, but not the only one. The company's strategic pivot and its ability to secure massive, approved power capacity at Helios position it squarely at the epicenter of the Texas AI power crunch. The approval directly addresses the viral sentiment around data center expansion. Yet, the crowded analyst targets and the inherent volatility of the broader crypto market mean GLXY is one key enabler in a larger, competitive race. The stock's momentum shows the market is betting heavily on it being the main character, but the wide price target range indicates the script isn't written yet.

Catalysts and Risks: What's Next for the Helios Story

The bullish thesis now hinges on execution. The next tangible catalyst is the ongoing construction of the first phase of the expanded campus. With work already underway, the company is on track to deliver initial power to its anchor tenant, CoreWeave, in early 2026. This is the critical next step: turning approved capacity into physical infrastructure and revenue. The market will be watching for milestones in the build-out schedule, as any delay could test the stock's momentum.

The primary risk, however, is the execution of that buildout and securing long-term customers for the new capacity. Galaxy itself cautions that future developments may differ from expectations. While the initial 800MW was locked in with CoreWeave, the newly approved 830MW represents a significant portion of the campus's total potential. The company must now demonstrate it can not only build this capacity but also sign long-term, revenue-generating leases for it. The success of the Helios story depends on converting this massive approved runway into contracted, paying tenants.

The runway itself is vast. The campus has the potential to eventually support up to 3.5 gigawatts of power. That's a multi-year development plan requiring substantial capital and operational management. The company's ability to fund this expansion and manage the complexities of a hyperscale data center build-out will be under the microscope. For now, the approved capacity and underway construction provide a clear near-term catalyst. But the stock's path will be dictated by how smoothly Galaxy navigates the transition from approval to delivery and customer acquisition.