Galaxy Digital (NASDAQ:GLXY) plunged nearly 30% over the past two weeks on concerns about AI infrastructure partner CoreWeave’s mounting debt.
Galaxy Digital Stock Under Pressure?
Market intelligence firm StoneX reaffirmed a Buy rating and $57 price target on Galaxy Digital, marking a 280% upside from current levels.
StoneX argued the market is undervaluing its AI data center operations while assigning virtually no value to its digital asset business, The Block reported Monday.
Investor concerns center on CoreWeave, the sole contracted tenant for the first 800 megawatts of gross power capacity at Galaxy’s Helios AI data center campus in West Texas.
CoreWeave reported $35.6 billion in outstanding debt at the end of June, while rising borrowing costs have raised questions about its ability to meet long-term commitments.
StoneX acknowledged the counterparty risk but argued that investors should consider Galaxy’s expansion opportunities and growing demand for AI computing infrastructure.
Why Does StoneX See Upside?
The firm noted that CoreWeave’s contracted backlog nearly quadrupled to $104 billion through June, reflecting strong AI demand despite its debt burden.
Resilient GPU rental rates and computing shortages continue to support infrastructure spending.
Galaxy delivered its first 133 MW of critical IT load in July under a 15-year CoreWeave lease covering 526 MW across three phases at its Helios campus.
Galaxy Digital Current And Beyond
Galaxy reported an $85 million net loss in Q2, although Helios began contributing revenue for the first time.
The AI data center business generated $20 million in adjusted gross profit and $11 million in adjusted EBITDA during the quarter.
Galaxy is also expanding beyond Helios, having acquired land for a second Texas AI data center campus in McGregor.
StoneX believes the market is overlooking the potential value of these infrastructure investments, particularly as demand for AI computing continues to accelerate.
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