Benchmark sees 80% upside on Galaxy Digital, flags Helios AI expansion as underpriced potential

Benchmark reiterated a Buy rating on Galaxy Digital (Nasdaq: GLXY) and maintained its $57 price target, arguing that recently approved expansion capacity at the firm’s Helios data center campus in Texas gives the company a layer of upside that is not yet reflected in its share price.

In a note published Tuesday, analyst Mark Palmer said the market has largely moved on from the headline approval of an additional 830 megawatts of power capacity at Helios, but has not fully digested what that approval means for Galaxy’s longer-term positioning in AI infrastructure and high-performance computing.

Benchmark framed the incremental capacity less as a near-term revenue driver and more as a form of optionality tied to future AI compute demand. Unlike the initial 800 MW at Helios, which is already contracted under a long-term agreement with CoreWeave, the newly approved capacity remains uncontracted, giving Galaxy flexibility to respond to evolving tenant needs, pricing dynamics and infrastructure requirements.

The expansion approval, granted by Texas grid operator ERCOT, lifts Helios’s total approved capacity to roughly 1.6 gigawatts, positioning it among the largest single-site AI data center campuses in the U.S.

Benchmark said the scale and regulatory progress already achieved at the site meaningfully differentiate Galaxy from other public companies seeking exposure to AI infrastructure.

Galaxy CEO Michael Novogratz echoed that long-term view last week, saying the firm is already evaluating additional land opportunities in Texas as demand from large AI customers continues to build. Speaking on CNBC’s Squawk Box, Novogratz said there is “huge demand from hyperscalers on this side of 2030.” 

Galaxy valuation factors

Benchmark’s sum-of-the-parts analysis assigns roughly $21 per share to the already-contracted Helios capacity alone, nearly 70% of Galaxy’s current stock price, with the remaining approved capacity treated as upside optionality.

Beyond data centers, the valuation also incorporates Galaxy’s digital asset trading, lending, and staking operations, asset management business, and balance-sheet holdings of crypto assets and investments. Benchmark said those existing businesses are sufficient to justify upside from current levels even without assigning value to the incremental Helios capacity.

The note also pointed to regulatory catalysts, arguing that Galaxy stands to benefit disproportionately if U.S. crypto market structure legislation advances, given the firm’s institutional focus and diversified operating model.

Separately, Galaxy has continued to expand its footprint in tokenized markets through its venture arm. CoinDesk reported Tuesday that Galaxy Ventures led a $7 million seed round in Tenbin Labs earlier this month, a startup building tokenized gold and foreign-exchange products that rely on futures-based pricing rather than custody-based wrappers. The investment adds to Galaxy’s exposure to onchain real-world asset infrastructure, particularly in commodities and non-dollar FX markets.

Shares of GLXY were trading around $31.75 on Tuesday morning, up nearly 30% from local lows near $22.50 at the end of 2025, according to The Block’s price data. Benchmark’s $57 target implies roughly 80% upside from current levels.

Galaxy is scheduled to report fourth-quarter and full-year results next week on Feb. 3.