Galaxy Digital’s AI Deal is transformative, analyst says

According to HC Wainwright & Co., Mike Colonngese, Mike Colonnaisse, recently announced an advertising announcement of the AI ​​recently announced by Galaxy Digital.

The agreement was announced during Galaxy Digital’s Q4 2024 CALLAGE Gening. As part of the agreement, Galaxy will reuse 200 MW of his Helios mining installation In western Texas to accommodate 133 MW of critical computer load for the GPUs of Coreweave.

The contract is expected to generate $ 4.5 billion in revenue over its duration, or about $ 300 million per year, which represents 70% of Total Galaxy income in 2024, according to the analyst. These terms are “very favorable compared to other high -performance computer agreements”, with approximately 2.26 million dollars per MW in annual income at around 90% of Ebitda margins.

Significant growth potential in Helios

While initial modernization costs are expected to be between $ 1.46 billion and $ 1.73 billion, the Colonnais noted that most of these elements will be funded through the debt of the project. Coreweave will cover continuous electricity and exploitation costs, now the recurring costs of Galaxy. The analyst also stressed that Galaxy A 600 MW of additional capacity in Helios to support future expansion. He wrote:

“By applying the current assessments of the data center to the capacity contracted for the new Galaxy data center company, we estimate that the segment could possibly be worth more than $ 3.5 billion, an assessment which is far from evaluated in shares.”

The analyst maintains a purchase note on Galaxy actions with a price target dropped from $ 35 CA to $ 30 CA. The price objective reflects a discount of around 40% compared to traditional financial brokers, given “the smallest scale of Galaxy and the narrow accent on digital assets” and a 40% discount in Coinbase.

Summary of the fourth trimester: the expectations exceeded

Galaxy also delivered a Q4 beat. Turnover of $ 698.1 million increased by 388% compared to the previous quarter and beat the $ 248.2 million analyst’s model and the estimate of the $ 202.7 million consensus.

The company said a gain made of $ 560.6 million on digital SSET during the quarter and a loss of $ 84.9 million on investments. Total operating expenses of $ 440.3 million increased by 137% over one quarter to another, driven in part by a single load of $ 166.3 million linked to a Rules with the Prosecutor General of New York To resolve complaints related to his involvement with Luna.

The net / BPA profit of $ 174.3 million / 52 cents also exceeded the estimate of the $ 94.2 million / 28 cents analyst.