Galaxy Digital doubles Helios data center capacity to 1.6GW after Texas approval, shares surge 12%

Galaxy Digital Secures Major Data-Center Expansion Approval

Galaxy Digital received approval from the Electric Reliability Council of Texas to expand its Helios data center campus with an additional 830 megawatts of computing capacity after completing a Large Load Interconnection Study 1

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. This data-center expansion approval effectively doubles the total approved power capacity to over 1.6 gigawatts, positioning the digital-assets and infrastructure company as a significant player in the hyperscale AI data center development market. Shares surged 12% to $31.56 midday Thursday, reflecting investor confidence in the company's infrastructure ambitions 2

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ERCOT Approval Marks Watershed Moment for AI Infrastructure

The new capacity will support multi-tenant partnerships and represents a crucial step in the long-term development of the Helios data-center campus, which is currently under construction in West Texas 1

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. Galaxy Digital CEO Mike Novogratz described the ERCOT approval as "a watershed moment for Galaxy and affirms our position as an operator capable of executing hyperscale AI data center development" 2

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. The company remains on track to deliver initial power in early 2026, marking a significant advancement in its high-performance computing infrastructure capabilities 1

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Stock Shows Bullish Momentum Amid Premium Valuation

Galaxy Digital stock is trading 19.4% above its 20-day simple moving average, demonstrating short-term strength, though it sits 1.6% below its 100-day moving average 1

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. Shares have increased 28.95% over the past 12 months and have risen 62% in the past year, positioning closer to 52-week highs 1

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. The stock carries a Buy Rating with an average price target of $44.80, suggesting 52% upside potential, with Citizens initiating coverage at Market Outperform with a $60.00 target in December 2025 1

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Tokenized CLO Issuance Expands Financial Innovation

Beyond the Helios data center development, Galaxy Digital announced Thursday it closed the issuance of Galaxy CLO 2025-1, the company's first tokenized collateralized loan obligation 2

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. The CLO, tokenized on the Avalanche blockchain, will finance an uncommitted credit facility to crypto lending platform Arch Lending, with $75 million financed so far and potential to scale up to $200 million 2

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. The transaction closed with a $50 million anchor allocation from Grove, a credit-infrastructure protocol within the Sky ecosystem 2

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Future Expansion Plans and Market Positioning

Galaxy Digital indicated it is considering additional power and land opportunities, both within Texas and outside the state, signaling ambitious plans to expand beyond the current Helios campus 2

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. The company's ability to secure such substantial power capacity approvals positions it competitively in the rapidly growing AI data center market, where computing infrastructure demand continues to accelerate. With a P/E ratio of 50.3x and a Benzinga Edge momentum score of 83/100, the stock reflects premium valuation expectations tied to its growth prospects in both digital assets and AI infrastructure 1

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. Investors will be watching the company's execution on delivering initial power and securing additional partnerships as it builds out this expanded capacity.