Benchmark sees 80% upside on Galaxy Digital, flags Helios AI expansion as underpriced potential
Benchmark maintained a Buy rating on Galaxy Digital with a $57 target, citing 80% upside driven by unpriced potential in its Helios AI data center expansion.Summary
Benchmark reiterated a Buy rating and a $57 price target for Galaxy Digital (GLXY), suggesting an 80% upside potential. The firm argues that the market has not fully priced in the significance of the recently approved 830 megawatts of additional power capacity at the Helios data center campus in Texas.
Analyst Mark Palmer views this incremental capacity, which is currently uncontracted, as valuable optionality tied to future AI compute demand, differentiating Galaxy from peers. Benchmark's valuation assigns about $21 per share to the already-contracted Helios capacity, covering nearly 70% of the current stock price, with the remaining upside derived from this unpriced expansion potential and other business segments.
Furthermore, Benchmark noted that Galaxy stands to benefit from potential advancements in U.S. crypto market structure legislation. Separately, Galaxy Ventures recently led a $7 million seed investment in Tenbin Labs to develop tokenized gold and FX products, expanding the firm's exposure to onchain real-world asset infrastructure.
(Source：The Block)