$GLXY

A large reason for the market completely overlooking its datacenter business, Helios, is a result of its lack of confidence that $CRWV will fulfil the 15-year, $1B annual contract for the first 800MW.

At current prices, $GLXY's Helios is priced at zero.

The stock currently trades at $8.45B. Net Digital Assets + Cash & Stablecoins make up half of that at $4.3B. The Digital Assets operating business brought in $505M in Adj. Gross Profit in FY25. If we assume just an 8x P/GP multiple here, it would imply a $4B market cap.

At these very conservative estimates, the data center business is valued at $0.

In essence, my thesis for $GLXY in terms of valuation upside, is the value of Helios. So how much can Helios really be worth?

At a 90% EBITDA margin on a $1B average annual contract, and a 20x EV/EBITDA multiple (avg data center REIT trades at 26x), we get $18B in enterprise value. Subtracting construction financing, we arrive at $15B in equity value.

That implies nearly 200% upside from the first 800MW that is already approved and contracted.

Last week, we had very favourable news for $CRWV. It signed a new deal with Anthropic and an expanded deal with $META. $CRWV services 9 out of the top 10 AI providers in the world. The complete lack of confidence by the market in its ability to fulfil the $GLXY contract is where the upside lies.

That’s not all. $GLXY has another 830MW approved by ERCOT that will almost certainly be contracted to a hyper-scaler.

In my view, that will be the turning point for a quick re-rating of the stock to finally acknowledge $GLXY as a data center player as much as it is a crypto infrastructure business. The market can ignore a singular 800MW tranche contracted to $CRWV but it cannot ignore a second 800MW tranche contracted to a hyper-scaler.