GLXY Stock Slumps Amid AI Data Center Push

Galaxy Digital's (GLXY) shares plummeted over 10% to their lowest point since April, despite announcing a major development in its push towards artificial intelligence and high-performance computing infrastructure. The company acquired 500 acres of land in McGregor, Texas, for its second AI data center campus.

The new facility is expected to generate 74 megawatts (MW) of capacity in its first phase, with plans to expand to a multi-hundred-megawatt facility through 2030. This marks Galaxy's broader move away from Bitcoin mining and into AI and data center infrastructure, following the 1.6 GW Helios campus in Dickens County.

Galaxy's CEO, Mike Novogratz, believes that the demand for compute is a 'structural shift' and not a passing cycle, and that building infrastructure strengthens the communities that host it. The company plans to build a disciplined, multi-campus data center business, with McGregor being the next step.