🥛 The best AI stock is... crypto? 🤨

GM. This is Milk Road, your crypto sommelier pairing the perfect alpha with your afternoon.

Here’s what we’ve got for you today:

✍️ Wall St’s $38 blind spot.
🎙️ The Milk Road Show: Bitwise: The Next Bitcoin Buyer Is Bigger Than Michael Saylor.
🍪 Haseeb: People claim crypto sentiment is worse than after FTX collapsed.

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Prices as of 2:00 p.m. ET. Powered by CoinGecko.

Galaxy is trading at ~$25 a share today.

And by our count, its data center business alone is worth ~$38 a share.

Which means the market is currently pricing Galaxy's crypto portfolio, trading desk, asset management arm, mining operation, and ventures at less than zero.

Five businesses, valued below nothing.

Now, I know what you're thinking: "Galaxy... again!?"

And you're right, we love talking about it. But that's because we see real near-term potential here (a rare thing in the current crypto market).

As we've mentioned in the past: outside of its crypto business, Galaxy owns Helios - an AI data center campus out in West Texas.

The first tenant is CoreWeave, an AI cloud company that rents out GPU computing power to the likes of OpenAI.

And as of this week, Phase I of the buildout is officially complete:

Source: @galaxyhq

Yep. 133 megawatts of critical IT load (i.e. the power that actually runs the servers) has been delivered to CoreWeave, on time and on budget.

Which meant rent started flowing in Q2, and Helios revenue is due to hit Galaxy's books as early as next earnings report.

That'll be the first time Wall Street sees this cash flow in actual reported numbers instead of projections.

But the business model behind that rent is the part the market hasn't processed yet…

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The Helios model works like this:

Galaxy builds the shell and delivers the power, then hands the building to the tenant, who installs their own chips.

Galaxy never buys a single GPU, never takes hardware depreciation risk, and collects contracted rent for 15 years (that's insane).

CoreWeave has committed to 526MW across Phases I through III, expected to generate over $1B in average annual revenue.

Let's run the numbers:

At steady state, Helios generates roughly $900M in annual EBITDA (earnings before interest, taxes, depreciation, and amortization - i.e. rough operating profit).
Contracted AI infrastructure peers trade at ~25x EBITDA.
That puts Helios at ~$15B in equity value.
Divide by ~390M shares and you land at ~$38 per share.

That’s just from the data center business. Before you assign a single dollar to anything else Galaxy does.

Source: @m0xt_

And there's a lever hiding in the balance sheet too:

Galaxy's construction loan sits at ~9.1%. Refinance that to ~7% and free cash flow to equity nearly doubles.

We know 7% is achievable, because Hut 8 just priced investment-grade bonds at 6.1% on a similar asset.

The usual objection is execution risk:

Galaxy still has to build Phases II and III, and lease out the other half of the campus.

(But that fear is now dampened after Phase I landed on schedule.)

Stack up the catalysts:

Helios revenue hits the P&L at next earnings.
A second tenant is expected by end of summer (Novogratz wants the full 1.6GW leased out by then).
Phase II data halls start delivering in the first half of 2027.

So we're left with two possibilities: either the market believes the full buildout never happens, or GLXY is undervalued by 50%+.

Our PRO team believes it's the latter… and they’ve been here before:

They called HYPE (+85.8%), HOOD (+63.7%), and MU (+142.1%), all before they ran.

They've been doing the same with GLXY, and are continuing to buy.

Don't miss their next entry - Milk Road PRO is 33% off (monthly and annual plans) for the next 7 days - get 33% off Milk Road PRO, here!