Key Takeaways
- • Galaxy Digital's stock rallied 13.48% on Thursday, closing at $31.99, driven by ERCOT approval of an additional 830 MW of computing capacity at its Helios AI data center in West Texas, bringing total approved capacity to 1.6 GW.
- • The company secured $460 million in private institutional investment to transform its former Bitcoin mining facility into an AI data center, representing a strategic pivot from cryptocurrency mining to high-performance computing infrastructure.
- • Benchmark maintains a Buy rating with a $57 price target, implying 80% upside potential, with analysts assigning approximately $21 per share value to the already-contracted 800 MW CoreWeave capacity and treating remaining approved capacity as upside optionality.
- • The Helios facility, still under construction, remains on track to deliver initial power to CoreWeave in early 2026, with Galaxy also evaluating additional power and land opportunities beyond Texas to capitalize on hyperscaler demand growth projected through 2030.
- • Morgan Stanley upgraded Galaxy Digital to Overweight, citing AI data center synergies and institutional crypto adoption as primary drivers, signaling analyst consensus that the bull case now rests primarily on AI infrastructure rather than Bitcoin exposure.
Summary
Galaxy Digital (GLXY) surged 13.48% to $31.99 on Thursday as the company announced a major expansion milestone for its Helios AI data center campus in West Texas. The Electric Reliability Council of Texas (ERCOT) approved an additional 830 MW of computing capacity, doubling the facility's total approved power capacity to 1.6 GW. This approval followed completion of a Large Load Interconnection Study and was accompanied by a service agreement with AEP Texas Inc. The expansion represents a substantial de-risking event for Galaxy's long-term positioning in the rapidly expanding AI infrastructure sector, with the company noting that Helios remains on track to deliver initial power to CoreWeave, one of its major clients, in early 2026.
The stock's strength reflects investor recognition of Galaxy Digital's strategic transition from cryptocurrency mining to AI data center infrastructure. The company previously secured $460 million in private institutional capital to fund the transformation of its Texas facility into a high-performance computing hub. Unlike the initial 800 MW of capacity already under a long-term contract with CoreWeave, the newly approved 830 MW remains uncontracted, providing Galaxy with significant flexibility to respond to evolving market demand and tenant requirements from hyperscalers through the remainder of the decade.
Benchmark analysts have reiterated a bullish stance on Galaxy Digital, maintaining a Buy rating with a $57 price target that implies 80% upside from current levels. Analyst Mark Palmer noted that while the market has reacted positively to the recent approval, investors have not yet fully priced in the long-term positioning advantages this expansion provides. Benchmark's valuation framework assigns approximately $21 per share to the already-contracted Helios capacity alone, with the remaining 830 MW of approved capacity treated as pure upside optionality contingent on additional tenant commitments.
Morgan Stanley has also upgraded Galaxy Digital to Overweight, citing synergies between AI data center expansion and institutional-grade cryptocurrency infrastructure as primary catalysts for the thesis. The analyst community's shift toward prioritizing AI infrastructure over Bitcoin exposure reflects the company's fundamental business reorientation. Galaxy Digital's stock has advanced nearly 30% from local lows in late 2025, with the company positioned to benefit from projected explosive growth in global data center capital expenditure—expected to more than double from $430 billion in 2024 to $1.1 trillion by 2029 as artificial intelligence demand transforms the infrastructure landscape.
The stock's strength reflects investor recognition of Galaxy Digital's strategic transition from cryptocurrency mining to AI data center infrastructure. The company previously secured $460 million in private institutional capital to fund the transformation of its Texas facility into a high-performance computing hub. Unlike the initial 800 MW of capacity already under a long-term contract with CoreWeave, the newly approved 830 MW remains uncontracted, providing Galaxy with significant flexibility to respond to evolving market demand and tenant requirements from hyperscalers through the remainder of the decade.
Benchmark analysts have reiterated a bullish stance on Galaxy Digital, maintaining a Buy rating with a $57 price target that implies 80% upside from current levels. Analyst Mark Palmer noted that while the market has reacted positively to the recent approval, investors have not yet fully priced in the long-term positioning advantages this expansion provides. Benchmark's valuation framework assigns approximately $21 per share to the already-contracted Helios capacity alone, with the remaining 830 MW of approved capacity treated as pure upside optionality contingent on additional tenant commitments.
Morgan Stanley has also upgraded Galaxy Digital to Overweight, citing synergies between AI data center expansion and institutional-grade cryptocurrency infrastructure as primary catalysts for the thesis. The analyst community's shift toward prioritizing AI infrastructure over Bitcoin exposure reflects the company's fundamental business reorientation. Galaxy Digital's stock has advanced nearly 30% from local lows in late 2025, with the company positioned to benefit from projected explosive growth in global data center capital expenditure—expected to more than double from $430 billion in 2024 to $1.1 trillion by 2029 as artificial intelligence demand transforms the infrastructure landscape.
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