The Most Mispriced AI Data Center in North America? Look Here.

When most people see Galaxy Digital (GLXY), they see crypto. Wild price swings, Bitcoin connections, regulatory news… the usual things that make big investors avoid the stock.

That's just the surface. Here's what they're missing.

Hidden inside that crypto-labeled stock sits one a valuable AI infrastructure plays: a data center campus called Helios that Galaxy bought from Argo Blockchain in December 2022 for $65 million[1].

The Bargain Purchase

The deal came just seven months after Argo officially launched Helios in May 2022[4], during the worst part of the crypto crash when mining companies were facing serious money problems. Helios is located on a 160-acre campus in Dickens County, Texas[5]. While the facility originally ran with 180 megawatts for Bitcoin mining, Galaxy transformed it and got approval for 800 megawatts of power capacity[9] - a huge upgrade that reflects the higher power needs of AI infrastructure.

Rather than continue mining operations, Galaxy switched the facility completely toward AI and high-performance computing infrastructure. A smart move as AI demand was beginning its massive climb.

The Numbers That Don't Match the Label

The change paid off big time. CoreWeave, which started in crypto mining and switched to cloud computing, is the only AI/HPC tenant for Galaxy under a 15-year lease agreement[6].

The numbers are huge:

• Galaxy expects to generate average annual revenue of more than $1 billion over the 15-year term of the agreements with CoreWeave[7]

• CoreWeave has committed to leasing the full 800MW of approved capacity at the Helios campus[7]

• This represents a total contract value over $15 billion over the 15-year term

Galaxy recently got a $1.4B loan to expand the Helios AI datacenter, with Deutsche Bank acting as the initial lender[8]. They have future expansion plans for 2.7 gigawatts (GW).

The Wrong Price Opportunity

Here's where it gets interesting. The market treats Galaxy like a crypto play when the reality is completely different. They own prime AI infrastructure generating massive, guaranteed cash flows. These are the kind of assets that trade at high prices in today's AI-crazy market.

The size of Galaxy's change becomes clear when you look at the revenue predictions. The $4.5 billion in expected total revenue is just from CoreWeave's current committed capacity, representing a small part of Helios's potential with the additional 1.7 GW under study.

The Timing Question

The first phase is scheduled to deliver power to CoreWeave's operations in early 2026[9], with capacity being delivered in phases over the coming years. CoreWeave has already used its first option to secure an additional 260 megawatts of critical IT load in what's called Phase II[10].

Galaxy spent years being punished for crypto exposure. Now that same ticker gives investors access to AI infrastructure economics that are usually locked up in private markets at what appears to be a big discount to the real asset quality.

The disconnect won't last forever. If CoreWeave begins operations in early 2026 and Galaxy reports its first quarterly AI infrastructure revenues, institutional investors will have concrete cash flow data to justify treating GLXY as a data center play rather than a crypto stock. Until then, expect Galaxy to trade with the same volatility patterns as other crypto-adjacent equities, creating a window for investors who can look past the sector classification and focus on the contracted revenue stream.

The Risk Reality

1. $1.4B debt to retrofit before revenue starts. Construction delays or cost overruns eat margins while debt service runs. Cash flows don't hit until early 2026, creating 18 months of financing costs with zero income. Retrofitting crypto mining to AI requires different cooling, networking, and power distribution. Galaxy has never operated AI data centers. They're learning while building under deadline.

2. CoreWeave is 100% of AI revenue. If they fail, restructure, or build their own facilities, the entire thesis collapses. 15-year lease provides protection but contracts get renegotiated in distress. CoreWeave looks very solid with Meta and OpenAI deals, billions raised, and IPO prep. Still, Galaxy's entire AI business depends on one customer's success. Zero tenant diversification.

3. Galaxy owns infrastructure, not AI technology. They're landlords collecting rent while CoreWeave operates the actual AI systems. Classic picks and shovels with steady returns but capped upside compared to AI's exponential economics.

These risks explain the discount to pure data center operators. Markets price in single-customer concentration and execution risk. The bet is whether contracted cash flows and hard assets justify valuation despite limitations.

The Full Picture: Still a Crypto Powerhouse

While Helios grabs headlines, Galaxy remains the top crypto company with business lines everywhere. This creates powerful connections that most investors miss.

Bitcoin Treasury: 7th largest corporate Bitcoin holder globally. Every crypto rally boosts their balance sheet.

Trading & Market Making: The go-to institutional desk handling massive Bitcoin transactions. A recent example: an anonymous whale with 80,000 Bitcoin chose Galaxy to execute their $9 billion trade. Over 1,400 trading counterparties trust Galaxy with $10+ billion in quarterly volume.

Asset Management: Managing over $7 billion in assets. Galaxy Ventures Fund I was oversubscribed, showing strong demand. They handle $3 billion in staked assets and are the 4th largest Solana validator.

Strategic Crypto Deals: 33% owner of All Unity, the first fully regulated Euro stablecoin. Could become the "Circle of Europe." Their GK8 platform handles major tokenization projects, potentially worth billions as real-world assets move on-chain.

Elite Relationships: CEO Mike Novogratz's Goldman Sachs background provides unmatched deal flow. The same crypto relationships that got them the CoreWeave AI deal - they originally met CoreWeave when it was an Ethereum miner.

The Connection: Galaxy's crypto business created their AI opportunity. They lent money to Argo Blockchain, bought Helios during the distressed sale, then used their CoreWeave relationship to pivot into AI. Now AI cash flows will fund crypto growth.

This isn't Galaxy abandoning crypto for AI. It's Galaxy using AI money to strengthen their crypto empire while capturing both crypto upside and steady infrastructure cash flows.

The Hardwired Investing View

This is textbook information advantage. Galaxy trades like a crypto stock. The market sees Bitcoin exposure and volatility. What it's missing is a $15+ billion contracted AI infrastructure business generating $1+ billion annually.

The advantage is simple: while computer programs group GLXY with debt-heavy miners, Galaxy already owns the land, power, and contracts. No debt, no execution risk. Pure infrastructure cash flows wearing a crypto ticker.

The information is public. CoreWeave deals, revenue predictions, capacity plans. But GLXY trades at a fraction of data center prices because investors never look past the crypto label.

This advantage expires when institutions start modeling Galaxy as infrastructure rather than crypto. That happens when cash flows hit in 2026, or when management unlocks value earlier.

We're not betting on crypto recovery or AI demand. We're buying proven infrastructure assets at a discount because the market could be categorizing them incorrectly.

References

[1] TechCrunch: "Bitcoin miner Argo to avoid bankruptcy with $100M deal from Galaxy Digital" (December 28, 2022)
https://techcrunch.com/2022/12/28/bitcoin-miner-argo-to-avoid-bankruptcy-with-100m-deal-from-galaxy-digital/

[2] CoinDesk: "Bitcoin Miner Argo Blockchain Will Avoid Bankruptcy With $100M Bailout From Novogratz's Galaxy Digital" (December 28, 2022)
https://www.coindesk.com/business/2022/12/28/bitcoin-miner-argo-will-avoid-bankruptcy-with-100m-bailout-from-novogratzs-galaxy

[3] Bitcoin News: "Bitcoin Miner Argo Blockchain Sells Helios Facility to Galaxy Digital for $65 Million" (December 28, 2022)
https://news.bitcoin.com/bitcoin-miner-argo-blockchain-sells-helios-facility-to-galaxy-digital-for-65-million-galaxy-to-host-argos-asic-fleet-in-texas/

[4] EverythingLubbock: "Galaxy acquires Bitcoin mining facility in Dickens from Argo" (January 17, 2023)
https://www.everythinglubbock.com/news/local-news/galaxy-acquires-bitcoin-mining-facility-in-dickens-from-argo/

[5] Newswire: "Galaxy Announces Commitment with CoreWeave to Host Additional Artificial Intelligence and High-Performance Computing Infrastructure at Helios Data Center Campus" (April 23, 2025)
https://www.newswire.ca/news-releases/galaxy-announces-commitment-with-coreweave-to-host-additional-artificial-intelligence-and-high-performance-computing-infrastructure-at-helios-data-center-campus-833906009.html

[6] Data Center Dynamics: "Galaxy Digital pivots from crypto to AI - signs 200MW deal with CoreWeave" (April 10, 2025)
https://www.datacenterdynamics.com/en/news/galaxy-digital-pivots-from-crypto-to-ai-signs-200mw-deal-with-coreweave/

[7] The Block: "Galaxy closes $1.4 billion debt facility to retrofit its Helios bitcoin mining center for CoreWeave AI deal" (August 15, 2025)
https://www.theblock.co/post/367127/galaxy-closes-1-4-billion-debt-facility-to-retrofit-its-helios-bitcoin-mining-center-for-coreweave-ai-deal

[8] AInvest: "Galaxy Digital Targets 3.5GW Helios Data Center Capacity as CoreWeave Exercises Final Option" (August 6, 2025)
https://www.ainvest.com/news/galaxy-digital-targets-3-5gw-helios-data-center-capacity-coreweave-exercises-final-option-2508/

[9] PR Newswire: "Galaxy Closes $1.4 Billion Project Financing Facility to Accelerate Helios AI Datacenter Development" (August 15, 2025)
https://www.prnewswire.com/news-releases/galaxy-closes-1-4-billion-project-financing-facility-to-accelerate-helios-ai-datacenter-development-302530804.html

[10] CoinDesk: "GLXY News: Galaxy Lands $1.4B for Helios Data Center Expansion as CoreWeave Commits to 800 MW" (August 15, 2025)
https://www.coindesk.com/business/2025/08/15/galaxy-secures-usd1-4b-to-expand-helios-data-center-for-ai-and-hpc

[11] PR Newswire: "Galaxy Closes $1.4 Billion Project Financing Facility to Accelerate Helios AI Datacenter Development" (August 15, 2025)
https://www.prnewswire.com/news-releases/galaxy-closes-1-4-billion-project-financing-facility-to-accelerate-helios-ai-datacenter-development-302530804.html

[12] The Block: "Galaxy closes $1.4 billion debt facility to retrofit its Helios bitcoin mining center for CoreWeave AI deal" (August 15, 2025)
https://www.theblock.co/post/367127/galaxy-closes-1-4-billion-debt-facility-to-retrofit-its-helios-bitcoin-mining-center-for-coreweave-ai-deal

[13] Seeking Alpha: "Galaxy Digital secures $1.4B financing to expand Helios AI data center" (August 15, 2025)
https://seekingalpha.com/news/4486182-galaxy-digital-secures-14b-financing-to-expand-helios-ai-data-center

[14] The Miner Mag: "Galaxy Expands CoreWeave Partnership Amid Bitcoin-to-AI Shift" (April 28, 2025)
https://theminermag.com/news/2025-04-28/galaxy-coreweave-bitcoin-hpc-2