Galaxy Digital Inc. has completed the delivery of the first phase of power at its Helios data center campus in West Texas, providing approximately 200 MW of gross power to CoreWeave under a 15-year lease agreement. The delivery includes 133 MW of critical IT load, marking a significant milestone in the company's data center infrastructure operations. Rent commencement under the Phase I lease is set to begin in the second quarter of 2026.

Key Details of the Agreement

The Helios data center campus is a strategic asset for Galaxy Digital, supporting its position as a global leader in digital assets and data center infrastructure. The agreement with CoreWeave underscores the growing demand for high-capacity power solutions in the digital asset and cloud computing sectors.

Operational Significance

The on-schedule delivery of Phase I highlights Galaxy Digital's execution capabilities in large-scale infrastructure projects. The 15-year lease with CoreWeave provides long-term revenue visibility and strengthens the company's foothold in the data center market. The Helios campus is expected to play a pivotal role in supporting the growing computational needs of the digital economy.

Galaxy Digital converted a $65 million rescue of a distressed Bitcoin mining facility into a $4.5 billion artificial intelligence infrastructure opportunity by signing a 15-year hosting agreement with CoreWeave. The deal centers on the Helios mining facility, which Galaxy acquired from Argo Blockchain, and has since been repurposed to support high-performance computing (HPC) and AI workloads. CoreWeave has exercised expansion options to utilize the site's entire currently approved 800 MW power capacity, signaling strong demand for the infrastructure.

Financial Projections and Operational Metrics

The transformation of the Helios site is expected to yield significant financial returns for Galaxy Digital. The company projects that the facility will generate more than $1 billion in annual revenue on average over the contract term. Operational efficiency is highlighted by lease-level EBITDA margins approaching 90%, underscoring the profitability of the hosting arrangement compared to traditional crypto mining operations.

Market Perception and Identity Challenges

Despite the operational success and robust financial metrics of the Helios facility, Galaxy Digital's stock performance has lagged behind other AI infrastructure and HPC-focused companies. Market analysis suggests that investors continue to categorize Galaxy primarily as a crypto-focused investment bank engaged in trading, asset management, mining, and capital markets activities. This perception creates a disconnect between the company's evolving business model and the valuation multiples typically applied to pure-play AI infrastructure firms.

The company finds itself caught between two distinct peer groups. Crypto investors benchmark Galaxy against entities like Coinbase Global and MARA Holdings, while its data-center operations increasingly resemble those of established infrastructure operators such as Digital Realty Trust and Equinix. This identity crisis complicates the market's ability to accurately price the value of the company's AI assets.

Strategic Options for Value Unlocking

With the first phase of the CoreWeave partnership now operational and lease revenue beginning to flow, investors are exploring strategic alternatives to bridge the valuation gap. A potential spin-off of Galaxy's data-center division is emerging as a key catalyst that could unlock significant shareholder value. Separating the AI infrastructure business would allow the market to apply data-center valuation multiples to the asset, rather than the lower multiples associated with the crypto sector. This move could help close the valuation disparity and provide a clearer reflection of the Helios facility's contribution to the company's overall worth.