When the CEO of Galaxy Digital (GLXY) Mike Novoghatz He bought the Argos’ Helios Data Center in late 2022On the depths of post -FTX encryption, the company believed to save a desperate business (BTC) on the edge of bankruptcy.
This, however, was before the prevailing Chatgpt became. Novogratz and its partners. He had no idea that this data center would be one of the strategic assets as the increased artificial intelligence nullity (AI) for more data center space, thanks to the explosive growth of LLMS models.
As an analyst from Rittenhouse Research shown in a new noteGalaxy’s Lucky Find, which incited the company’s transmission from BTC completely, may be a more profitable axis in Crypto, as it provokes the issue that the infrastructure used in digital gold mining is better used to treat the following growth algorithms.
Rittenhouse analysts argue that artificial intelligence data centers are a much more profitable commercial model than BTC mining because they generate stable and long -term cash flows with minimal capital expenses, in contrast to fluctuations and capital density in bitcoin mining.
BTC mining revenues in nature fell by about 50 % every four years due to HalvININGS scheduled. Effectively, the play for a mine worker is a long -term bull on the price of BTC and the ability of the semiconductor fans and designers to develop more efficient chips, and for the investor, this is many variables.
In contrast, artificial intelligence data centers such as Helios in Galaxy gets consistent and high -sideline revenues through a three -term net rental for superior tenants (a widespread cloud computing provider), without the need for a continuous investment in mining equipment.
“Galaxy stumbled on Helios by virtue of good luck,” Rittenhaus wrote in his memo. While competitors such as riots and mining in the blades have attempted publicly to “rewrite history”, the proposal of their actions retroactively was always broader than BTC mining, “in fact, these miners had no intention to do anything alongside Mine BTC until Chatgpt was launched.”
A wider manufacturing transformation?
Galaxy transition reflects a wider trend as BTC miners try to artificial intelligence and cloud computing.
However, analysts confirm the large Galaxy feature, which stems from its superior public budget ($ 1.8 billion in net cash and investments), the successful implementation record, and the credibility that was determined by the Coreave rental contract.
While some have raised concerns about Coreave’s credit wall, causing Galaxy shares trading with a great discount, Rittenhouse analysts say these fears are greatly exaggerated, highlighting the stability of the exceptional Coreove revenues of long -term contracts that represent 96 % of its revenues and strong institutional support.
Analysts emphasize that Coreave’s debts are carefully organized through late cloud loans, and are used specifically for financial infrastructure directly related to guaranteed customer agreements, which greatly reduces virtual risk.
Rittenhouse also notes that Galaxy has fully entered artificial intelligence, and now has no mining.
Analysts wrote: “Galaxy has completely emerged from all Bitcoin mining activities to focus only on AI’s data center aspirations, which send a positive signal to potential potential tenants,” the analysts wrote.
Also, Rittenhouse, CIPHER MINING CEO, recently writes that the hard -brigade mines when approaching the main artificial intelligence agents.
Big said in the quarter of 2025: “Do not be lost to us that if we are talking to a party with you, the roof of a trillion dollar market … one defect for the workers’ workers ’workers’ workers ’workers’ work is that the main opposite parties say, “Wow, this is a great commitment to you, companions of independent of such an important investment for us.”
Galaxy does not have this problem. With this Helios deal and Novoghatz completely from mining, the Galaxy’s occasional axis may turn into the best strategic step for Crypto years ago – if the Rittenhouse’s thesis is correct.
