Galaxy Digital (NASDAQ:GLXY) may have stumbled into one of the most lucrative AI infrastructure deals in the sector after acquiring the Helios mining facility from distressed Bitcoin (CRYPTO: BTC) miner Argo Blockchain.

The $4.5 Billion Deal, But Identity Crisis

In an X post on June 23, investment firm Arca’s Chief Investment Officer Jeff Dorman highlighted that Galaxy’s transformation accelerated after it signed a 15-year hosting agreement with CoreWeave (NASDAQ:CRWV) valued around $4.5 billion.

CoreWeave has since exercised expansion options that utilize the site’s entire currently approved 800 MW power capacity.

Galaxy expects the facility to generate more than $1 billion in annual revenue on average over the contract term, with lease-level EBITDA margins approaching 90%.

Despite the Helios success, Galaxy’s stock has significantly lagged other AI infrastructure and HPC-focused companies.

The challenge, according to the analysis, is that investors still largely view Galaxy as a crypto-focused investment bank involved in trading, asset management, mining and capital markets activities rather than a pure-play AI infrastructure company.

That leaves Galaxy caught between peer groups.

Crypto investors compare it with Coinbase Global (NASDAQ:COIN) and MARA Holdings (NASDAQ:MARA), while its data-center business increasingly resembles infrastructure operators such as Digital Realty Trust (NYSE:DLR) and Equinix (NASDAQ:EQIX).

Spin-Off Could Unlock Value

With CoreWeave’s first phase now operational and lease revenue beginning to flow, some investors see a potential spin-off of Galaxy’s data-center division as a catalyst.

Separating the AI infrastructure business could allow investors to value the asset using data-center multiples rather than crypto-sector valuations.

This could potentially help the bulls to bring a closure to what they view as a significant valuation gap.

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