Rittenhouse Research has issued a strong buy rating for Galaxy Digital (GLXY), focusing on its strategic shift from Bitcoin mining to AI data centers, particularly after the acquisition of the Helios facility. Analysts highlight that AI data centers provide stable, long-term cash flows compared to the volatility of BTC mining. This transition aligns with a broader trend where BTC miners are seeking more profitable avenues as AI demand surges due to the rise of Large Language Models. Galaxy's decision to pivot entirely to AI infrastructure is seen as beneficial, leveraging a strong balance sheet with substantial cash reserves. In addition, Galaxy has completely exited Bitcoin mining, which analysts believe positions it favorably among hyperscale cloud providers who may prefer partners without mining liabilities. CoreWeave's strong revenue from long-term contracts, a key aspect of Galaxy's strategy, reflects this positive outlook amid a competitive landscape. Rittenhouse concludes that Galaxy's proactive changes may be among the most valuable strategic pivots in the crypto space.

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