A new report by fintech and crypto research firm Rittenhouse Research cited Galaxy Digital’s transition from Bitcoin mining to artificial intelligence (AI) infrastructure as the top reason for its “strong buy” rating on the company’s stock. Galaxy Digital’s AI Pivot, Not Bitcoin Mining, Is Its Biggest Bull Case, Rittenhouse Research Says While Galaxy Digital was once a major player in Bitcoin (BTC) mining, its 2022 acquisition of the Helios data center from troubled miner Argo Blockchain may have unexpectedly positioned the company as a major infrastructure provider in the burgeoning AI economy. At the time of the acquisition, the move was seen as a lifeline for a struggling crypto miner. But the rapid rise of productive AI platforms like ChatGPT has turned the demand for high-performance data centers into a gold rush, and Galaxy appears to be sitting on one of the most valuable assets in the space. “Galaxy stumbled upon Helios by chance,” Rittenhouse wrote in a recent investment note. The firm believes the data center, now dedicated to serving AI customers, could generate $1.7 billion in EBITDA and $32 billion in equity value in the near term. While the crypto industry remains volatile due to BTC mining being subject to periodic outages and constant equipment upgrades, AI data centers typically offer stable, high-margin returns through triple-net leases with large-scale cloud computing customers. Rittenhouse argues that this contrast in business models makes it a strategic advantage for Galaxy to exit mining entirely. “Galaxy has completely exited all Bitcoin mining activities to focus solely on its AI data center targets, sending a positive signal to potential hyperscaler tenants,” the analysts wrote. Rittenhouse's report compares Galaxy's approach to that of other crypto miners like Riot Platforms and Cipher Mining, which have attempted to reframe themselves as diversified data infrastructure providers. But the report argues that, in reality, these companies had no concrete AI goals until the AI boom began. *This is not investment advice. Continue Reading: The Giant Company That Switched From Bitcoin Mining to Artificial Intelligence Sector Is Experiencing Its Own Bull! Here Are the Details