Galaxy Digital's (GLXY) expansion into AI infrastructure and prediction markets is being rewarded as investors are placing a premium on crypto companies with revenue streams beyond digital assets.
The company's shares have climbed more than 50% over the past 12 months, including a 21% jump on 8 Jun, as investors increasingly value Galaxy's AI, digital infrastructure and prediction markets businesses alongside its crypto operations.
Investor interest in Galaxy's AI ambitions intensified after chief executive Mike Novogratz said on a podcast on 6 Jun that the company was building what would become "the largest single-campus data centre in America", referring to Galaxy's 1.6GW Helios campus in West Texas, a former Bitcoin mining site the company is converting into an AI and high-performance computing hub.
Novogratz said the data-centre business now accounts for more than half of Galaxy's value and has become the primary focus for analysts and investors following the company.
As of 16:38UTC on 9 Jun, Galaxy shares were largely flat trading at $30.54, giving the company an intraday market capitalization of approximately $11.9bn, according to Yahoo Finance data.
Rather than operating AI hardware itself, Galaxy builds and powers the facilities before leasing data halls to customers, who install and manage their own computing equipment. Galaxy has said the Helios campus is expected to generate more than $1bn in average annual revenue over the 15-year term of its lease agreements with cloud-computing firm CoreWeave assuming full utilisation of the contracted capacity.
The company has also moved into prediction markets, recently launching an institutional over-the-counter trading desk in June and placing an inaugural $10mn trade tied to the outcome of the CLARITY Act, a digital asset legislation before the US Congress.
Investment banking firm Citizens this week reiterated its Market Outperform rating and $55 price target on Galaxy following the launch of its prediction-markets business. The launch, combined with Galaxy's data centre business, expands the company beyond its traditional crypto trading, investing and asset-management operations.
AI drives re-rating
Investment manager VanEck noted in a commentary on 8 Jun that mining and infrastructure equities rallied in May even as spot crypto prices declined.
Hut 8 led the group with a 64% gain in May, followed by Riot Platforms at 57%, Applied Digital at 39%, Cipher Mining at 38% and IREN at 37%. Core Scientific, TeraWulf and CleanSpark also advanced during the month.
The gains followed a series of AI infrastructure announcements across the sector. Hut 8 signed a $9.8bn, 352MW lease agreement at its Beacon Point campus, IREN reached a $1.6bn agreement with Dell to deploy Nvidia Blackwell systems, Applied Digital secured a 15-year lease at its Polaris Forge 3 site and Riot announced a 25MW expansion of its data centre operations.
New valuation model
The shift has changed how many investors assess crypto infrastructure companies, with analysts increasingly focusing on power capacity, data centre development pipelines and long-term computing contracts rather than hash rate.
The change also comes as Bitcoin (BTC) struggles to match the performance of AI-linked equities. Bitcoin traded near $62,000 on 9 Jun after recovering from a brief drop below $60,000 the previous week.
Wealth manager Bernstein said on 8 Jun that recent weakness in Bitcoin reflected softer inflows into spot Bitcoin exchange-traded funds (ETFs) rather than a deterioration in the asset's long-term investment case.
"Bitcoin price is a reflection of relative flows," the analysts wrote, noting that net inflows into spot Bitcoin ETFs in 2026 have been "significantly weaker" than in 2025.
The divergence was particularly evident in May. While Bitcoin fell 3.8% and Ether (ETH) lost 11%, the Nasdaq-100 gained 10.5% and the MVIS Global Digital Assets Equity Index advanced 21.5%.
Bernstein nevertheless argued that Bitcoin "still may offer some diversification from the unusual singular AI driven momentum markets we have experienced this year."
