Galaxy Digital has secured a 15-year AI hosting agreement with CoreWeave, a deal that analysts believe could significantly boost the company's valuation. As announced during its Q4 2024 earnings call, Galaxy will repurpose 200 MW of its Helios mining facility in West Texas to support CoreWeave’s high-performance GPUs, allocating 133 MW for critical IT load. H.C. Wainwright & Co. analyst Mike Colonnese sees this move as transformative, with the potential to generate substantial long-term revenue.

The contract is expected to bring in $4.5 billion over its term, averaging $300 million per year—equivalent to 70% of Galaxy’s total 2024 revenue. With an estimated $2.26 million per MW in annual revenue at 90% EBITDA margins, the deal appears highly lucrative compared to other high-performance computing agreements. While the initial retrofit costs are projected between $1.46 billion and $1.73 billion, most of the expenses will be covered through project debt, and CoreWeave will finance electricity and operational costs, minimizing Galaxy’s recurring expenses.

Despite lowering his price target from C$35 to C$30, Colonnese maintains a Buy rating on Galaxy’s stock, noting that the company’s new data center segment could eventually be worth over $3.5 billion. Additionally, Galaxy delivered an impressive Q4 performance, with revenue surging 388% quarter-over-quarter to $698.1 million—far exceeding analyst expectations. As the company expands its data center business and leverages its remaining 600 MW of capacity at Helios, Galaxy Digital appears well-positioned for future growth in the AI and high-performance computing space.