Galaxy Digital (ticker: GLXY) experienced a significant rally in Monday afternoon trading, with shares jumping 23.6% to $31.07, after CEO Mike Novogratz highlighted the company's West Texas AI data center project as a pivotal component of the stock's narrative, moving beyond its traditional crypto trading focus.
The stock, listed on the Nasdaq, reached an intraday high of $31.75, with trading volume exceeding 15 million shares, well above the daily average. This surge positions the stock for one of its most substantial one-day gains since its U.S. listing, reflecting a market revaluation of Galaxy's assets.
Speaking on Anthony Scaramucci's “All Things Markets” podcast, Novogratz described the Helios campus as “the largest single-campus data center in America,” with half of its capacity already leased. “It’s an amazing business. It’s probably more than half the value of Galaxy today,” he stated, as reported by the Wall Street Journal. This shift in focus from digital assets to AI infrastructure has caught the attention of investors.
The broader tech sector also saw gains, with the Nasdaq Composite rising 1.27% and the S&P 500 adding 0.63%. Chipmakers outperformed as investors engaged in bargain hunting following Friday’s selloff. “Today looks like a day where investors are doing a little bit of bargain hunting off the big tech selloff,” noted Rick Meckler, partner at Cherry Lane Investments, in a Reuters report.
Galaxy’s Helios campus is now central to the stock’s story. In April, the company delivered the first data hall to CoreWeave, transitioning from construction to revenue generation. Delivery of nearly all 133 megawatts of critical IT load is still on track for the end of the second quarter. CoreWeave’s first-phase leases cover 800 megawatts of gross power and 526 megawatts of critical IT load over a 15-year base, with projected average annual revenue exceeding $1 billion when fully ramped, though results may vary.
Power availability remains a key factor. In January, Galaxy secured an additional 830 megawatts from ERCOT, the main Texas grid operator, bringing total approved power to over 1.6 gigawatts. Novogratz called this a “watershed moment,” citing unprecedented demand for AI-capable, high-density capacity in Texas.
Galaxy’s stock performance reflects its unique position, moving in tandem with crypto names like Coinbase (up 6.7% on Monday) and AI-infrastructure stocks like Applied Digital (up 3.9%). CoreWeave, its primary tenant, rose 2.3%. Bitcoin climbed 2.7% to roughly $63,421, but the gap between Galaxy’s surge and bitcoin’s modest rise indicates investors are revaluing the data-center business.
Wall Street analysts have been bullish on Galaxy ahead of this rally. All sixteen analysts surveyed by S&P Global have “Buy” ratings, with an average price target of $41.56, ranging from $28 to $57. However, the trade comes with significant execution risk. Galaxy reported a $216 million net loss for the first quarter, driven by falling digital-asset prices. The Helios project depends on construction timelines, tenant acquisition, financing costs, and power supply, with filings warning that results could change due to business, economic, and competitive uncertainties.
Investors now face a split bet: a crypto business tied to token prices and volumes, plus a large AI infrastructure buildout requiring capital and speed. Monday’s move suggests the market is currently placing higher value on the AI piece, but the dual nature of Galaxy’s business means ongoing scrutiny.
