When Galaxy Digital (GLXY) CEO Mike Novogratz bought Argos’ Helios Data Center by the end of 2022, at the depth of the Post-TTX Crypto Winter, the company thought they saved a desperate Bitcoin (BTC) mines on the verge of bankruptcy.

However, this was before Chatgpt had become mainstream. Novogratz and co. Do not have any idea that this data center would be a strategic asset as the growing artificial intelligence (AI) industry mussels for more data center space thanks to the explosive growth of large language models (LLMs).

As analysts from Rittenhouse research outlined in a new note, Galaxy’s Lucky Find, who initiated the company’s movement out of BTC mining hero, now be Krypto’s most lucrative pivot as they do that the infrastructure used to be used to treat AI -algorithms, -mining against AI -to be to the mini to get started, is about to move on to move away from BTC -mining towards AI -to AI infrasting stocks.

Rittenhouse analysts claim that AI data centers represent a significantly more lucrative business model than BTC mining because they generate stable, long-term cash flows with minimal current capital costs that contrast sharply with volatility and capital intensity of Bitcoin mining.

BTC mining revenue falls by nature by about 50% every four years due to the planned Halvinings. Effectively, the play for a miner is to be a long -lasting bull at BTC’s price and the ability for semiconductors and designers to develop chips that are forever more effective, and for an investor it is a lot of variables.

In contrast, AI DATA centers such as Galaxy’s Helios facility earn consistent high margin through long-term, triple grid contracts for hyperscaler tenants (a large-scale cloud computing provider) without needing continuous investments in mining equipment.

“Galaxy stumbled over Helios by virtue of good luck,” Rittenhouse wrote in their note. While competitors such as rebel platforms and chiffermin operations have been publicly trying to “rewrite the story” suggests that their business was always wider than BTC mining, analysts say: “In reality, these miners had zero intentions to do something besides my BTC until chatgpt was launched.”

A wider industry shift?

Galaxy’s transition reflects a wider trend when BTC mine workers try to turn against AI and Cloud Computing.

Nevertheless, analysts emphasize Galaxy’s significant advantage that stems from its overall balance ($ 1.8 billion net cash and investment), a successful execution record and credibility established through the Coreweave lease.

While some have raised concerns about Coreweave’s credit rating, causing Galaxy’s shares to trade a significant discount, Rittenhouse analysts say that these fears are markedly exaggerated and highlights Coreweave’s extraordinary revenue stability from long-term contracts that account for 96% of its revenue and its strong institutional security copy.

Analysts emphasize that Coreweave’s debt is carefully structured through delayed loans that are loans specifically for financing infrastructure directly linked to secured customer agreements, which dramatically reduces the default risk.

Rittenhouse also notes that Galaxy has gone fully on AI and now has no exposure to mining.

“Galaxy has completely left all Bitcoin -mining to focus solely on its AI data center ambitions, sending a positive signal to potential hyperscalers,” analysts wrote.

As Rittenhouse writes, Cipher Mining’s CEO Tyler Page recently recognized the uphill match miners as they approach great AI customers.

“It is not lost on us that if we are talking to a counterpart with a $ 1 Billion Billion Market Capital … One disadvantage for Bitcoin mining workers is that big counterparties say, ‘wow, it’s a big commitment for you to behind for such an important investment for us,'” Page said at the company’s Q1 2025 earnings.

Galaxy doesn’t have that problem. With this Helios agreement in place and Novogratz’s company completely out of mining, Galaxy’s unintended turntable may just prove to be Crypto’s best strategic features this year – if Rittenhouse’s dissertation is correct.