Galaxy Digital keeps “Outperform” rating at ATB Capital

Galaxy Digital Holdings (Galaxy Digital Holdings Stock Quote, Chart, News, Analysts, Financials TSXV:GLXY) is expanding its data center footprint after CoreWeave exercised its option to lease an additional 260 megawatts at the company’s Helios site, a move analysts say strengthens Galaxy’s position in high-performance computing and supports its long-term growth plans.

ATB Capital Markets, which rates Galaxy “Outperform” with a 12-month price target of $40.00, views the expansion as a key step forward in unlocking value from the company’s infrastructure investments.

The announcement came on April 23, before markets opened, when Galaxy confirmed the new lease agreement. The deal builds on the 133 MW agreement announced in March and brings CoreWeave’s total contracted capacity at Helios to 393 MW.

“This Phase II agreement, under similar terms to the prior 133 MW lease (announced March 28, 2025), increases CRWV’s total contracted capacity at Helios to 393 MW,” ATB analyst Martin Toner said in his April 23 Flash Note.

The terms are similar to the first agreement, and Galaxy says work at the site is already underway. Phase I is expected to be up and running by the first half of 2026, with Phase II following in 2027.

CoreWeave also holds exclusive rights to another potential 133 MW expansion. Under the original lease, Galaxy expects about $4.5 billion in total revenue over 15 years, including $240 million in the first year, with EBITDA margins projected at 90%. Capital spending is estimated at $11–13 million per MW.

“Overall, we are constructive on CRWV’s option exercise and its high-margin terms,” Toner said. “Via a DCF, we previously forecasted that phase 1 was worth ~US$4.00 per share. Given the longer lead times, phase 2 should be modestly lower than double that value. We think that HPC will be a material value driver for the stock over time.”

“CRWV’s initial 133 MW lease was announced on March 28, 2025,” Toner said. “Over the 15-year term, the company expects to generate $4.5-billion of total revenue (averaging $300-million), with $240-million in revenue expected in year one. GLXY expects an H1/26 delivery date for the full 133MW and projects EBITDA margins related to the deal to come in at 90%, with $11-$13-million per MW of capex projected (though future capex costs may decline), all of which are higher than similar deals we have seen in the space.”

The original lease agreement with CoreWeave included two options to extend the term by five years each and the potential to lease an additional 600 megawatts at the Helios site. Galaxy will cover construction costs and provide on-site staff. The company expects to secure debt financing in the coming months, aiming for a structure of 80% debt and 20% equity, with an expected interest rate of 10% to 11% on the construction loan.

“Management previously highlighted the availability of an additional 1.7GW under various stages of load study at Helios,” Toner said. “Management anticipates ‘some portion’ of this capacity to be approved of in the next several months. Longer-term, the vision is to create a large 2.5GW ‘data center campus’ at Helios.”