StoneX believes Galaxy's AI data center operations are undervalued despite CoreWeave's $35.6B debt load and rising borrowing costs.
AI & Agents ·
StoneX has assessed that Galaxy's AI data center operations remain undervalued despite headwinds facing CoreWeave, the infrastructure provider in which Galaxy holds a stake. The analysis centers on CoreWeave's financial pressures, specifically $35.6 billion in debt outstanding as of June and mounting borrowing costs that have weighed on sentiment around the asset class.
CoreWeave's debt burden and rising cost of capital reflect tighter financing conditions in the GPU infrastructure market, where borrowing has become more expensive and competitive. Yet StoneX's call suggests the market may be over-discounting Galaxy's exposure to this sector, implying that the operational fundamentals and long-term value of the AI data center business have not been fully priced in.
The framing leaves several questions unresolved: whether CoreWeave can sustain or refinance its debt load, what level of profitability or cash generation underpins the valuation gap StoneX identifies, and whether rising rates will continue to compress returns for highly leveraged infrastructure operators in the space.