CEO Mike Novogratz said passage of the CLARITY Act could drive a wave of traditional-finance participation in crypto markets.
- Galaxy executives argued the stock remains undervalued, citing a lack of analysts capable of valuing both its crypto and data-center businesses together.
- The company repurchased $65 million of stock in the first quarter and still has authorization to buy back up to $200 million.
- Galaxy's Helios campus has begun generating revenue, with up to 800 megawatts of additional capacity expected to come online next year.
Galaxy Digital (GLXY) executives made the case on Friday that the market was mispricing the company, arguing investors were undervaluing its growing artificial intelligence (AI) infrastructure business and future crypto opportunities.
CEO Mike Novogratz explained in an Ask Me Anything (AMA) for investors that the market was assigning Galaxy "no value for growth," arguing that the company is often analyzed through separate crypto and data-center lenses rather than as a single business. Executives pointed to recent share buybacks, growing revenue from the Helios data-center campus, and potential crypto regulatory tailwinds as reasons for optimism
Management's Confidence
Chief Financial Officer (CFO) Anthony Paquette further said during the meeting that Galaxy had repurchased roughly $65 million of stock during the first quarter, representing 3.2 million Class A shares. The purchases were made under a program authorizing up to $200 million in buybacks.
Paquette added that the repurchase program was designed to reflect management's view that the company's shares trade below their intrinsic value, while also maintaining balance-sheet flexibility. Galaxy previously said the buybacks more than offset dilution from stock-based compensation.
GLXY stock closed up over 3% on Friday. On Stocktwits, the retail sentiment around GLXY remained in the ‘bearish’ zone, while retail sentiment around it stayed in the ‘low’ levels over the past day.
Helios Expansion Moves Into Revenue Generation
The Galaxy executives also highlighted progress at the company's Helios data-center campus in West Texas, which has entered early revenue-generating operations following the delivery of its first data hall.
Paquette substantiated by adding that phase one remained on track to be substantially complete by the end of the second quarter. Phases two and three were expected to add as much as 800 megawatts of gross power capacity next year.
Galaxy has received approval for more than 1.6 gigawatts of total capacity at the site and owns roughly 1,500 acres surrounding the campus. Executives added that the company has another 1.8 gigawatts of power opportunities in various stages of evaluation.
Novogratz described the data-center business as fundamentally a power business, citing growing electricity shortages and industry concerns that many planned US data centers may face construction delays. He said Galaxy continued to evaluate additional sites beyond Helios as it expanded its AI infrastructure.
Novogratz Sees Regulatory Tailwinds For Crypto
On the digital-asset side, Novogratz acknowledged a "frustrating year in token prices" but argued the industry is increasingly shifting from speculative trading toward infrastructure supporting tokenized stocks, money market funds, and stablecoins.
He said passage of the CLARITY Act would trigger a "stampede" of traditional financial institutions into crypto markets, adding that negotiations surrounding ethics provisions tied to public officials issuing digital tokens remain one of the final hurdles in Congress.
Novogratz also said Galaxy expected to announce new partnerships in the coming months as institutional adoption of digital assets continues to expand.
Galaxy stock was up over 30% so far this year.
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