“Rittenhouse Research, A NEW FIRM COVERING FINTECH, AI, AND Crypto, Is Giving Glxy A Strong Buy Rating Because of ITS BTC MINING TO AI transition”, – WRITE: www.coindesk.com
This, However, Was Before Chatgpt Had Become Mainstream. Novogratz and co. HAD NO IDEA THAT DATA CENTA Wuld be a strategic asset as the growing artificial intelligence (ai) Industry Clamours for More Data Center Space, Thanks to the Explosive Growth Growth. (Llms).
As Analysts from Rittenhouse Research Outlined in a New Note, Galaxy’s Lucky Find, Who Instigated The Company’s Move Out of Btc Mining ALTOGETCHER The CASE THAT INFRASTRUCTURE USED TO MINE DIGITAL GOLD IS BETTER USED TO PROCESS AI AI Algorithms, and Firms That Shift Away from Btc Mining Towards ai Infrastructure.
Analysts from Rittenhouse Argue that ai Data Centers Represent A Significantly More Lucorative Business Model than Btc Mining Because they Generate Stable, Long-Term Cash Flow Mill Expenditures, Contrasting Sharply with the Volatility and Capital Intensity of Bitcoin Mining.
BTC Mining Revenues inherently Decline by Approximately Effectvely, The Play for A Miner is Being A Long-Term Bull On Btc’s Price and the Ability for Semiconductor Fabs and Designers to Develop Chips that Are Perpetuly More. Variables.
In Contrast, AI Data Centers Like Galaxy’s Helios Facility Earn Consistent, High-Margin Revenue Through Long-Term, Triple Net Lease to Hyperscaler Tenants Without Needing Continuous Investment in Mining Equipment.
“Galaxy Stumbled Upon Helios by Virtue of Good Luck,” Rittenhouse Wrote in Their Note. While Competitors Such as Riot Platforms and Cipher Mining Have Publicly Tried to “Rewrite History,” Retroactiely Suggesting Their Business Was Always Broader Thrans HAD ZERO INTENTIONS TO Anything BESIDES MINE BTC UNTIL CATGPT WAS LAUNCHED. ”
A Broader Industry Shift?Galaxy’s Transition Reflects A Broader Trend As BTC MINERS ATTEMPT TO PIVOT TWARD AI AND CLOD Computing.
Yet, Analysts Underscore Galaxy’s Significant Advantage, Stemming from Its Superior Balance Sheet Coreweave Lease.
While Some Have Raceded Concerns Over Coreweave’s Creditworthaness, Causion Gausion Galaxy’s Shares to Trade at A Significant Discount, Rittenhouse Analysts Sayese FEESE FEARSE FEARSE FEARSE FEARSE FEARSE FEARSSE FEESE FEESE FEESE FEESE FEESE FEESSE FEESE FEESE FEESE FEARSSE FECHLYTS Highlighting Coreweave’s Exceptional Revenue Stability from Long-Term Contracts Accounting for 96% of ITS Revenues and Its Strong Institute Backing.
The Analysts Emphasize that Coreweave’s Debt is Carefully Structured Through Delayed Draw Term Loans, Utilized Specifyly to Finance InfrastRemer Direct. Dramatically Reducing default Risk.
Rittenhouse Also Notes That Galaxy Has Gone Fully in on AI, and Now Doesn’t Have Any Exposure to Mining.
“Galaxy has complely exited all bitcoin mining activities to focus solely on it ai data center ambitions, which sends a positive signal to potentiescaler.
As rittenhouse writes, Cipher Mining’s Ceo Tyler Page Recently Acknowledged the UPPHill Battle MINERS FACE WHEN APRACHING MAJOR AI Customers.
“IT’s not lost on US that if we’re talking to acounterparty with a $ 1 Trillion Market cap … One DrawBack for Bitcoin Mines Such An Important Investment for Us, ‘”Page Said on the Company’s Q1 2025 Earnings Call.
Galaxy Doesn’s have that Problem. Withis Helios Deal in Place and Novogracraz’s Company Totally Out of Mining, Galaxy’s Acidental Pivot Might Just Turn Out to Be Crypto’s Best Strategic Move in Years – Ifto
X Icon
