Galaxy Digital shares face CoreWeave risk as StoneX backs Helios valuation

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Galaxy faces CoreWeave risk

Highlights

StoneX maintains a Buy rating and $57 price target on Galaxy Digital, arguing the market undervalues its AI data center and ignores digital asset operations.
CoreWeave, Helios's sole tenant, faces scrutiny over $35.6 billion debt at June-end despite its contracted backlog increasing to $104 billion in five quarters.
Galaxy delivered 133 megawatts of IT load in July, reported $85 million Q2 net loss with $20 million adjusted gross profit, and expanded Texas AI data center footprint.

StoneX backs Helios amid tenant debt scrutiny

As reported by The Block, StoneX reiterates a Buy rating and a $57 price target on Galaxy Digital, arguing that the company's current valuation understates its AI data center business and effectively assigns no value to its digital asset operations.

Galaxy Digital shares have fallen about 30% in two weeks amid concerns over the financial health of CoreWeave, whose rising borrowing costs and $35.6 billion in debt outstanding at the end of June have drawn investor attention. CoreWeave is the sole tenant contracted for the first 800 megawatts of capacity at Galaxy's Helios campus.

In a note to clients, analyst Mark Palmer says the market may be overstating the risks. He points to CoreWeave's contracted backlog, which nearly quadruples to $104 billion in the five quarters through June, as well as firm GPU rental rates and sustained demand for computing power.

Texas expansion and AI demand support outlook

Palmer says investors should also weigh Galaxy's options for expanding Helios and the broader outlook for AI computing demand. Despite falling AI token prices, he writes that higher usage is driving greater spending on AI compute, while GPU demand continues to outstrip supply.

In July, Galaxy delivers the first 133 megawatts of critical IT load under a 15-year lease. CoreWeave commits to 526 megawatts of critical IT load across three phases, with Helios contracting the full 800 megawatts of gross power.

Galaxy reports an $85 million net loss for the second quarter, even as Helios generates its first revenue, including $20 million in adjusted gross profit and $11 million in adjusted EBITDA. The company is also expanding beyond Helios after acquiring land for a second Texas AI data center campus in McGregor, while GLXY shares trade up 2.5% to $16.57 on Monday.

Our earlier article on the U.S. AI data center boom highlighted how rising financing costs, construction delays, and power constraints are testing whether developers can deliver projects on schedule and within budget. We also noted that investor sentiment has become more cautious, with CoreWeave’s sell-off and examples like cost overruns in Texas underscoring how capital intensity can pressure returns even as AI compute demand remains strong.

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