Galaxy Digital Holdings is a buy, this analyst says

Galaxy Digital Holdings (Galaxy Digital Holdings Stock Quote, Chart, News, Analysts, Financials TSX:GLXY) announced on Aug. 15 the closing of a $1.4-billion project financing facility to fund development of its Helios data centre campus. The financing, together with Galaxy’s $350-million equity contribution, will support the initial retrofit and expansion to deliver power to CoreWeave under a long-term agreement starting in early 2026.

The $1.4-billion debt facility was secured at 80% loan-to-cost, carries a 36-month term, and is backed by all assets tied to the first phase of Helios’s build-out.

“We view the announcement positively, it is in line with management’s comments during the Q2/25 call and in our view, raising project financing was an important hurdle to executing its HPC build-out,” ATB Capital Markets analyst Martin Toner said in his Aug. 15 update.

The analyst is maintaining an “Outperform” rating on Galaxy with a 12-month price target of $50.00.

CoreWeave has committed to the full 800MW of approved power at Helios, having exercised its final option in Q3 to add 133MW of incremental critical IT load at similar terms to its earlier 15-year, 133MW lease signed in March 2025. With land already acquired and a 1GW interconnect request in place, Helios has the potential to scale to 3.5GW, which management says would make it one of the largest AI data centre campuses globally. Phase I, covering 133MW, is on track for energization in the first half of 2026.

According to Galaxy’s SEC filing, the credit agreement bears interest at one-month Term SOFR with a 250-basis-point floor, plus a 4.75 per cent margin. The facility also includes a financial covenant requiring a minimum debt-service coverage ratio of 1.40 beginning with the first full quarter after stabilization, and a maximum loan-to-cost ratio of 80% at close and each subsequent quarter. Toner noted that management had previously guided investors to expect a sub-10 per cent rate on project financing, or 10–11 per cent including fees.

“This financing marks a major milestone in our transformation of Helios into a next-generation AI and HPC datacenter campus,” said Mike Novogratz, founder and CEO of Galaxy. “We’re on track and excited to deliver the first phase of power to CoreWeave beginning in early 2026. This project is a key step in diversifying Galaxy’s business model as we expand beyond crypto and into the broader AI infrastructure space.”

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