The firm said Helios data center could be among the world’s largest single-campus HPC sites.
- Morgan Stanley estimated that Galaxy’s Helios project could be worth more than $30 billion in terminal equity value.
- It said CoreWeave’s commitment is expected to generate $435 million in EBITDA for Galaxy.
- GLXY’s stock has gained 78% year-to-date and nearly 170% over the past 12 months.
Morgan Stanley on Thursday initiated its coverage on Galaxy (GLXY) with an ‘Overweight’ rating and a price target of $42, assigning a potential value of more than $30 billion to the company’s upcoming Helios data center.
In a note to investors cited by TheFly, the firm said Galaxy’s dual focus on blockchain-enabled investment banking and artificial intelligence (AI) data center development makes for a “compelling combination.”
GLXY’s stock rose more than 3.5% in pre-market trade. However, retail sentiment around the company on Stocktwits continued to trend in ‘bearish’ territory over the past day.
Helios Data Center Could Drive Significant Value
Morgan Stanley noted that Galaxy’s Helios data center, once fully built out and contracted, could rank among the world’s largest single-campus high-performance computing facilities.
It estimated the Helios project could be worth more than $30 billion in terminal equity value—a forward-looking measure of the company’s estimated equity worth once the data center reaches full scale and revenue potential. Helios has already secured 800 megawatts of approved and committed power capacity, with an additional 1.7 gigawatts (GW) under various stages of development and permitting. At full buildout, the campus could reach 3.5 GW.
Moreover, Galaxy has secured a 15-year, 393-megawatt (MW) commitment from CoreWeave, which is expected to generate $700 million in annual revenue at full capacity. Morgan Stanley estimates CoreWeave’s portion could be worth more than $435 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) for Galaxy.
Morgan Stanley’s bullish call on Helios’ potential also reflects a broader market narrative that AI data center capacity is not keeping up with demand.
Galaxy Digital To Benefit From Institutional Blockchain Adoption
Morgan Stanley also highlighted that Galaxy Digital is well-positioned to benefit from the institutional adoption of blockchain technology, given its role as a blockchain-enabled investment bank. “Galaxy Digital Asset is levered to instutional blockchain adoption, a trend we view as nascent, enabled by the current political backdrop,” it said in its report.
GLXY’s stock has gained more than 78% this year and nearly 170% in the last 12 months.
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