Galaxy Digital · The Block
Galaxy’s AI data center business is undervalued amid CoreWeave debt concerns, StoneX confirms
Compiled by KHAO Editorial — aggregated from 1 source. See llms.txt for citation guidance.
★ Tier-1 Source
Galaxy Digital (GLXY) shares have fallen about 30% in two weeks amid concerns about the financial health of CoreWeave, the neocloud provider that is the sole tenant contracted for the first 800 megawatts of capacity at Galaxy's Helios AI data center campus in West Texas.
Key facts
- Galaxy reported an $85 million net loss for the second quarter, even as Helios generated its first revenue, including $20 million in adjusted gross profit and $11 million in adjusted EBITDA
- Galaxy Digital (GLXY) shares have fallen about 30% in two weeks amid concerns about the financial health of CoreWeave, the neocloud provider that is the sole tenant contracted for the first 800
- In July, Galaxy delivered the first 133 MW of critical IT load under a 15-year lease
- The concerns about GLXY stem from the fact that the contracted cash flows for the first 800 MW at its Helios data center complex rest on a single counterparty whose cost of capital has jumped
Summary
In a note to clients, StoneX reiterated its Buy rating and $57 price target, arguing that Galaxy's current valuation undervalues its AI data center business and effectively assigns no value to its digital asset operations. "The concerns about GLXY stem from the fact that the contracted cash flows for the first 800 MW at its Helios data center complex rest on a single counterparty whose cost of capital has jumped," analyst Mark Palmer wrote in Monday's note.
Despite falling AI token prices, he wrote, rising usage is driving increased spending on AI compute, while demand for GPUs continues to outstrip supply.