Galaxy Digital (GLXY) stock has dropped roughly 30% over a two-week period due to worries regarding the financial stability of CoreWeave, the cloud startup that serves as the exclusive renter for the initial 800 megawatts of capacity at the Helios AI data center facility run by Galaxy in West Texas.
Within a communication sent to clients, StoneX maintained its Buy recommendation and $57 price target, maintaining that the present valuation of Galaxy undervalues its artificial intelligence data center division and essentially attributes zero worth to its crypto asset ventures. These worries focus on CoreWeave’s increasing borrowing expenses and an outstanding debt load of $35.6 billion as of the conclusion of June.
“The anxieties surrounding GLXY arise because the guaranteed revenue streams for the initial 800 megawatts at its Helios data center facility rely upon a solitary partner whose funding expenses have risen,” analyst Mark Palmer stated in the report released Monday. Nevertheless, he asserted that market participants ought to factor in Galaxy’s alternative paths for scaling Helios as well as the wider trajectory for artificial intelligence processing requirements.
Palmer highlighted CoreWeave’s secured order backlog, which expanded almost fourfold to reach $104 billion across the five quarters ending in June, alongside steady graphics processing unit rental costs and escalating requirements for processing capability, as factors indicating the market could be exaggerating the dangers.
Even with dropping artificial intelligence token costs, he noted, expanding utilization is fueling higher investments in AI processing, while the need for graphics processing units keeps exceeding available inventory.
During July, Galaxy provided the initial 133 megawatts of essential IT capacity under a fifteen-year rental agreement. CoreWeave agreed to take 526 megawatts of essential IT capacity across three stages, with Helios securing the total 800 megawatts of total energy.
Galaxy disclosed an $85 million net deficit for the second quarter, notwithstanding Helios producing its initial income, which featured $20 million in modified gross earnings and $11 million in modified EBITDA. The business is also growing past Helios, having secured property for an additional Texas artificial intelligence data center property situated in McGregor.
GLXY shares increased by 2.5% to reach $16.57 during Monday’s trading session.
Originally published at https://www.theblock.co/news/markets/2026-10-19-galaxy-digital-glxy-stonex-buy-coreweave-helios-ai-data-center-421045.
