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From crypto fixer-upper to AI landlord
Galaxy Digital may have bought itself a monster asset. The company picked up the Helios mining facility from busted Bitcoin miner Argo Blockchain for what was once framed as a rescue mission — and now that site is looking more like a trophy property in the AI arms race.
The CoreWeave effect
The big unlock is a 15-year hosting agreement with CoreWeave, reportedly worth about $4.5 billion. CoreWeave has already exercised expansion options that soak up the site’s entire currently approved 800 MW of power capacity, which is basically the infrastructure version of “we’ll take the whole menu.”
Galaxy expects the contract to throw off more than $1 billion in annual revenue on average over the life of the deal, with lease-level EBITDA margins approaching 90%. That’s the kind of math that makes investors sit up and ask, wait, why is this still being priced like a crypto side quest?
The valuation gap problem
That’s the catch: the market still tends to lump Galaxy in with crypto names like Coinbase and MARA, even as the data-center side starts looking a lot more like Digital Realty or Equinix. Those are very different animals, and very different multiples.
The big question: spin or stay?
Now some bulls are floating a spin-off of the data-center business as the next catalyst. In theory, separating the AI infrastructure arm could let Wall Street slap it with infrastructure-style valuations instead of crypto-sector side-eye.
Big picture: Galaxy’s “oops, we bought a mining site” moment is starting to look a lot more like a very expensive and very profitable AI hosting strategy.