Galaxy Digital: The Hidden Gem with 80% Upside Hiding in Plain Sight

💎 Hidden Gem: Galaxy Digital's Underpriced AI Opportunity

Benchmark analyst Mark Palmer sees nearly 80% upside in Galaxy Digital (Nasdaq: GLXY), and the market may be missing the bigger picture. While GLXY shares have rebounded roughly 30% from year-end lows near $22.50 to trade around $31.75, Benchmark's $57 price target suggests the stock remains substantially undervalued. The firm reiterated its Buy rating this week, pointing to a crucial catalyst that hasn't fully registered with investors: the recently approved expansion at Galaxy's Helios data center campus in Texas. According to Palmer's analysis, the market acknowledged the headline approval of an additional 830 megawatts but hasn't digested what this expansion means for Galaxy's positioning in AI infrastructure and high-performance computing over the next several years. For investors hunting undervalued exposure to the AI infrastructure boom, Galaxy Digital presents a compelling case that blends traditional digital asset services with rapidly scaling data center operations.

🏗️ Helios Expansion: From 800 MW to 1.6 GW Approved Capacity

Galaxy Digital completed a Large Load Interconnection Study and secured approval from Texas grid operator ERCOT for an additional 830 megawatts of computing demand at its Helios campus in West Texas. This approval more than doubles the site's total approved capacity to roughly 1.6 gigawatts under utility contracts with AEP Texas, with transmission support from Wind Energy Transmission Texas. Unlike the initial 800 MW at Helios, which is already contracted under a long-term agreement with CoreWeave, the newly approved capacity remains uncontracted. Benchmark framed this as optionality rather than immediate revenue, giving Galaxy flexibility to respond to evolving tenant needs, pricing dynamics, and infrastructure requirements as AI compute demand continues accelerating. The 1.6 GW scale positions Helios among the largest single-site AI data center campuses in the United States. Construction is underway on the first phase, with initial power delivery to CoreWeave expected in early 2026.

🤝 CoreWeave Partnership Anchors Near-Term Revenue Visibility

Galaxy's partnership with CoreWeave provides crucial validation and near-term cash flow stability as the broader Helios buildout progresses. CoreWeave, a specialized AI cloud provider often termed a neocloud, has emerged as a key infrastructure partner for hyperscalers including OpenAI, Meta, and Microsoft. The company recently received a $2 billion investment from Nvidia to support its ambitious plan to add more than five gigawatts of AI data centers by 2030. CoreWeave's business model centers on GPU-as-a-Service, offering specialized infrastructure optimized for AI training and inference workloads. For Galaxy, the CoreWeave agreement de-risks the initial Helios phase while the company evaluates additional land and power opportunities across Texas and other markets. CEO Michael Novogratz recently told CNBC's Squawk Box that demand from hyperscalers remains robust through the end of the decade, providing confidence in the long-term runway for Helios expansion beyond the contracted capacity.

📊 Benchmark's Sum-of-the-Parts: Why GLXY Trades Below Intrinsic Value

Benchmark's valuation framework assigns approximately $21 per share to the already-contracted Helios capacity alone, representing nearly 70% of Galaxy's current stock price around $31.75. This suggests that the market is valuing Galaxy's digital asset trading, lending, staking operations, asset management business, and balance-sheet crypto holdings at minimal premiums to the contracted data center revenue. The newly approved 830 MW of uncontracted capacity is treated as pure upside optionality in Benchmark's model, not yet assigned concrete value despite representing a doubling of approved power capacity. Palmer argued that Galaxy's existing businesses justify upside from current levels even without monetizing the incremental Helios capacity. The firm also highlighted regulatory catalysts, noting that Galaxy stands to benefit disproportionately if US crypto market structure legislation advances, given the company's institutional focus and diversified operating model. This creates a multi-layered value proposition: immediate upside from undervalued core operations, medium-term revenue growth from contracted Helios capacity, and long-term optionality from uncontracted AI infrastructure expansion.

🚀 Strategic Positioning: Multi-Gigawatt Vision and Tokenized Markets Expansion

Galaxy's approach differs from crypto-native peers that have executed full-scale pivots away from digital assets toward AI infrastructure. The company maintains strong momentum in its legacy digital asset operations while simultaneously building a multi-gigawatt data center platform designed for AI and high-performance computing workloads. This dual-track strategy could deliver recurring revenue stability through infrastructure while meeting continued demand for institutional digital asset services in volatile markets. Beyond Helios, Galaxy continues expanding its footprint in tokenized markets through Galaxy Ventures, which recently led a $7 million seed round in Tenbin Labs. The startup is building tokenized gold and foreign-exchange products using futures-based pricing rather than custody-based wrappers, adding exposure to onchain real-world asset infrastructure in commodities and non-dollar FX markets. Novogratz's comments about evaluating additional Texas land opportunities signal aggressive expansion plans as hyperscaler demand intensifies through 2030.

🎯 Conclusion: Asymmetric Risk-Reward for Patient Investors

Galaxy Digital presents an unusual investment profile: a company trading at roughly $32 per share with a $57 price target backed by tangible contracted revenue, approved expansion capacity, and exposure to multiple high-growth verticals. Benchmark's analysis suggests the already-contracted Helios capacity alone justifies significant appreciation, while the additional 830 MW represents unpriced optionality tied to surging AI infrastructure demand. Risks remain, including execution challenges in scaling data center operations, potential shifts in AI compute demand, and continued volatility in digital asset markets that comprise Galaxy's legacy business. However, for investors willing to look past near-term noise, the combination of institutional-grade digital asset services, contracted data center revenue beginning in early 2026, and 1.6 GW of approved capacity at Helios creates a compelling asymmetric risk-reward setup. Galaxy is scheduled to report fourth-quarter and full-year results on February 3, which should provide updated guidance on Helios timelines and broader business momentum. At current valuations, the market appears to be underpricing Galaxy's positioning at the intersection of digital assets and AI infrastructure.

Sources

https://www.theblock.co/post/387240/benchmark-buy-galaxy-digital-helios-expansion-underpriced-upside https://investor.galaxy.com/news-releases/news-release-details/galaxy-completes-ercot-interconnection-studies-and-secures https://www.investing.com/analysis/the-bullish-case-for-galaxy-digital-in-2026-200673269 https://finance.yahoo.com/news/nvidia-backs-coreweave-2b-fuel-144151698.html https://www.coindesk.com/business/2026/01/27/galaxy-digital-leads-usd7m-investment-in-tenbin-to-build-improved-tokenized-gold-and-fx-markets

Market Munchies and Mode Mobile communications are for informational purposes only, and are not a recommendation, solicitation, or research report relating to any investment strategy, security, or digital asset. All investments involve risk including the loss of principal and past performance does not guarantee future results.

Any information contained in this commentary does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. There is no guarantee that any statements or opinions provided herein will prove to be correct.

Get fresh insights, breaking news, and hidden gems in the world of crypto—delivered straight to your inbox with our Crypto Cookies newsletter. Don't miss out—sign up now and get your first bite of insider knowledge!