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GLXY — Galaxy Digital: the crypto company building AI’s power plants
A digital-asset merchant bank that quietly became one of the largest AI data-center developers in North America — and is now collecting contracted rent from CoreWeave on 133 MW it has actually delivered.
01The 30-second read
Fast read
Galaxy Digital is two businesses wearing one ticker. The first is a digital-asset merchant bank — trading, lending, asset management, staking — that is still where most earnings come from. The second is a data-center developer whose Helios campus in West Texas just started billing rent. Demand for the second is not in question: CoreWeave has signed 15-year leases covering the full 800 MW of approved power at Helios (526 MW of critical IT load), expected to generate more than $1B in average annual revenue at project margins guided to over 90% from Q3 2026.
The catch is the P&L. Q2 2026 was an $85M net loss driven by digital-asset depreciation; data centers contributed just $20M of adjusted gross profit and $11M of adjusted EBITDA. Bulls see a power-and-land developer with a >5.7 GW pipeline. Bears see a crypto balance sheet in a data-center costume, funded with ~$4.9B of project debt — including $3.5B of 9.875% secured notes — and reliant on a single tenant.
02What Galaxy Digital actually is
Galaxy is a digital-asset financial services firm that has spent the last three years turning itself into an AI infrastructure developer. It reports in three segments: Digital Assets (OTC spot and derivatives trading, lending, M&A advisory, capital markets, staking, tokenization and custody — the operating core, at $66M of adjusted gross profit in Q2 2026, with an average loan book of ~$1.4B and 1,741 trading counterparties); Data Centers (the Helios campus in West Texas, a former bitcoin-mining site being converted into liquid-cooled AI data halls); and Treasury & Corporate (principal digital assets, venture and fund investments, and legacy bitcoin mining — ~$1.16B of net digital assets and investments at June 30, 2026).
The company listed on the TSX in 2018 and began trading on Nasdaq in May 2025 after redomiciling to the United States. Mike Novogratz, the founder, remains CEO. The strategic argument for the data-center pivot is diversification: swap mark-to-market crypto earnings for long-dated contracted rent.
Helios is the data-center story. Phase I — 200 MW of gross power, 133 MW of critical IT load — was delivered to CoreWeave on schedule on July 6, 2026, with rent commencing in Q2. Phases II and III take contracted capacity to the full 800 MW of approved gross power. Total approved campus capacity is 1.63 GW, on more than 2,200 acres, with potential to reach 3.6 GW at full buildout. That is the asset bulls are paying for — and it sits underneath a company whose revenue line is still measured on a crypto-trading basis.
03The bull case
1 · The Helios lease is signed, long, and large
- CoreWeave has committed to 526 MW of critical IT load across Phases I–III — the full 800 MW of gross power approved at Helios
- 15-year leases with two five-year extension options
- Expected to generate more than $1B in average annual revenue — contracted, not traded
2 · Phase I landed on schedule
- All 133 MW of critical IT load handed over and energised on July 6, 2026, on time and on budget
- Guides to ~$80M of quarterly leasing revenue and >90% project-level adjusted EBITDA margin from Q3 2026
- Phase II (260 MW IT) under construction; data-hall deliveries expected to begin H1 2027
3 · Power and land are the scarce assets
- Three new Texas sites post-quarter — Merlin/McGregor (74 MW → up to 500 MW), Caspian (~700 MW) and Selene (~900 MW)
- Total power pipeline lifted to over 5.7 GW
- 1.63 GW approved at Helios now, 3.6 GW at full buildout — interconnection rights are the AI bottleneck
4 · The build is project-financed
- Phase I: $1.4B facility, 80% loan-to-cost, 36-month term, plus $350M of Galaxy equity
- Phase II: $3.507B of 9.875% senior secured notes due 2031, issued by a Helios subsidiary
- Debt sits against the asset, not the parent — the utility-builder structure
- Street consensus Buy: 16 analysts, avg target ~$40.63 (range $26–$57), ~+65% upside
04The bear case
1 · Crypto still drives the P&L
- Q2 2026 adjusted gross profit: Digital Assets $66M vs. Data Centers $20M
- Treasury & Corporate lost $42M gross / $78M EBITDA on unrealized crypto losses
- Firm-wide adjusted EBITDA was −$77M; net loss $85M (EPS −$0.09)
2 · The rent is real but small
- Data Centers produced just $11M of adjusted EBITDA in Q2
- Even at the guided ~$80M/quarter, that is ~$320M a year — against a gross revenue line of $8.71B on a crypto-trading basis
- Phases II–III revenue does not arrive in earnest until 2027+
3 · The financing is expensive
- $3.507B of 9.875% secured notes closed July 28, 2026 — roughly $346M a year in interest
- ~$4.9B total Helios project debt, or roughly $13M per contracted MW of IT load across Phases I–II
- Notes mature 2031; Phase II revenue begins 2027
4 · One tenant, one campus — and dilution
- CoreWeave is effectively the only Helios customer — itself a heavily levered AI compute company
- Shares outstanding up 43.6% YoY to ~390.9M funding the pivot
- Stock −25% over 52 weeks, ~46% off its $45.92 high; 7.7% short interest; beta ~3.7
05The numbers
| Metric | Value | Note |
|---|---|---|
| Q2 2026 net loss | −$85M | EPS −$0.09; crypto marks drove it |
| Q2 adj. gross profit | $43M | Firm-wide |
| Q2 adjusted EBITDA | −$77M | Negative firm-wide |
| Digital Assets adj. gross profit | $66M | +34% QoQ; still the earnings core |
| Data Centers adj. gross profit | $20M | First full revenue quarter |
| Data Centers adj. EBITDA | $11M | >90% margin guide from Q3 |
| Treasury & Corporate adj. EBITDA | −$78M | Unrealized crypto losses |
| Q2 gross revenues & gains | $8.71B | Crypto trading, gross basis |
| Total equity | $2.72B | Jun 30, 2026 |
| Cash & stablecoins | $2.46B | Jun 30, 2026 |
| Total debt | ~$5.1B | Balance sheet, per aggregator |
| Debt / equity | 1.87× | |
| Net digital assets & investments | $1.16B | −15% QoQ |
| Helios approved power | 1.63 GW | 2,200+ acres; up to 3.6 GW potential |
| CoreWeave contracted load | 526 MW IT / 800 MW gross | 15-year leases + 2× 5-yr options |
| Expected Helios revenue | >$1B / year | Average annual, per company |
| Phase I delivered | 133 MW IT (200 MW gross) | Jul 6, 2026, on schedule |
| Phase I leasing guide | ~$80M / quarter | >90% project EBITDA margin from Q3 2026 |
| Helios project debt | ~$4.9B | $1.4B @80% LTC + $3.507B @9.875% |
| Total power pipeline | >5.7 GW | After 3 new Texas sites |
| Consensus | Buy | 16 analysts (9 SB / 5 B / 2 H) |
| Average target | ~$40.63 | Range $26–$57 |
| Implied upside | ~+65% | vs. $24.69 |
06What could change the story
Bull triggers
- The next print shows the promised ~$80M of quarterly leasing revenue at >90% project margin — the moment data centers become a visible earnings contributor
- Phase II construction stays on plan for H1 2027 data-hall deliveries
- A second tenant is signed at Helios, or part of the 1.63 GW / 3.6 GW expansion gets contracted
- Crypto marks stop dragging the P&L, so the data-center segment is no longer drowned out
- Phase III financing prices better than the 9.875% coupon
Bear triggers
- A Phase II delivery slip or cost overrun at Helios
- A CoreWeave credit event or contract dispute — there is no second customer to lean on
- A crypto drawdown that re-links the share price to bitcoin and pushes the segment to further losses
- Refinancing or new project debt above 9.875%, or covenant pressure
- Dilution outrunning the market’s appetite
07What’s next
2026
Next quarterly print (estimated). The first quarter of full Phase I rent. Watch whether the ~$80M leasing revenue and >90% margin guide is delivered in practice.
2027
Phase II deliveries. 260 MW of critical IT load begins handing over — the test of whether Helios can repeat Phase I’s on-schedule execution at three times the size.
→
Tenant diversification and Phase III funding. Whether Helios becomes genuinely multi-tenant, and whether the remaining 133 MW is financed at better than 9.875%.
08FAQ
Is Galaxy Digital a crypto company or a data-center company?
Both, and the split matters. On Q2 2026 numbers, Digital Assets produced $66M of adjusted gross profit versus $20M for Data Centers. Data centers are the growth story; crypto is currently the earnings story.
What is the Helios deal with CoreWeave worth?
CoreWeave has leased the full 800 MW of approved gross power (526 MW of critical IT load) on 15-year leases with two five-year extensions, expected to generate more than $1B in average annual revenue at project-level margins guided above 90%.
How much of Helios is actually built?
Phase I — 133 MW of critical IT load (200 MW gross) — was delivered and energised on July 6, 2026, with rent running. Phase II (260 MW IT) is under construction, with deliveries expected to begin H1 2027. Phase III (133 MW IT) is contracted but not yet delivered.
How is the build financed?
Phase I via a $1.4B project facility at 80% loan-to-cost, 36-month term, plus $350M of Galaxy equity. Phase II via $3.507B of 9.875% senior secured notes due 2031, issued by a Helios subsidiary and closed July 28, 2026. Combined Helios project debt is roughly $4.9B.
Is GLXY profitable?
No. Q2 2026 was a net loss of $85M (EPS −$0.09) on negative $77M adjusted EBITDA, driven by digital-asset depreciation. Data Centers turned positive ($11M) but is not yet large enough to carry the firm.
Is GLXY a buy?
Consensus is Buy with an average target of ~$40.63 (~+65% upside), but the range is $26–$57 and two of 16 analysts are at Hold with targets near the current price. This page is research, not a recommendation.
Sources & method
- Galaxy Digital Q2 2026 results press release, Aug 5, 2026 (net loss $85M, EPS −$0.09; adjusted gross profit $43M; adjusted EBITDA −$77M; segment tables; total equity $2.72B; cash & stablecoins $2.459B; net digital assets & investments $1.16B; gross revenues $8.711B; power pipeline >5.7 GW; $3.507B notes closed Jul 28, 2026)
- Galaxy newsroom: "Galaxy Completes Phase I of Its Helios Data Center Campus," Jul 6, 2026 (133 MW IT / 200 MW gross delivered; Phase II 260 MW IT with H1 2027 deliveries; 526 MW IT / 800 MW gross contracted; 15-year leases + two 5-year options; >$1B average annual revenue; >2,200 acres; 1.63 GW approved, up to 3.6 GW)
- Galaxy newsroom: "Galaxy Closes $1.4 Billion Project Financing Facility," Aug 15, 2025 (80% loan-to-cost, 36-month term, $350M Galaxy equity)
- PR Newswire / Galaxy: pricing of $3.507B 9.875% senior secured notes due 2031, Jul 23, 2026 (issued by Galaxy Helios Data Centers II LLC)
- Market data: stockanalysis.com (close $24.69 on Sep 18, 2026, +10.82%; market cap $9.65B; EV $13.18B; 390.89M shares, +43.56% YoY; total debt $5.08B; D/E 1.87×; short interest 7.72%; 50/200-day averages $22.92/$25.02); Morningstar and Investing.com for the 52-week range $16.43–$45.92; WallStreetZen for prior close $22.28 (Sep 17)
- Consensus: 16 analysts via S&P Global aggregation — 9 Strong Buy / 5 Buy / 2 Hold; average target $40.63, range $26–$57 (stockanalysis.com); MarketBeat target $38.83. Recent actions: Morgan Stanley $48 (Buy, Sep 9), Goldman Sachs $28 (Hold, Sep 9), Citi $26 (Hold, Sep 4), BTIG $45 (Buy, Aug 25), Rosenblatt $35 (Buy, Aug 12), Piper Sandler $33 (Overweight)
- Next earnings date: estimated Oct 20, 2026, before market open (stockanalysis.com and public.com aggregator estimates) — not confirmed by the company as of this snapshot
- Bitcoin/token holdings: aggregator counts differ widely (roughly 6,900 to 25,700 BTC) because some include client and ETP assets; treated as reported, unverified. The company-reported figure of $1.16B of net digital assets and investments (Jun 30, 2026) is used instead
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