Galaxy Digital (GLXY) investor relations material

Key themes and industry evolution

• Panelists highlighted the rapid evolution from Bitcoin mining to diversified data center operations, with a strong focus on high-performance computing (HPC) and AI workloads as future growth drivers.

• Companies are leveraging their expertise in energy management, power procurement, and rapid deployment to create flexible infrastructure that can serve both Bitcoin mining and AI compute needs.

• Strategic acquisitions, retrofitting existing facilities, and partnerships with major energy and technology firms are enabling faster, cost-effective expansion and adaptation to market demands.

• The ability to secure and monetize large-scale power assets is seen as a critical differentiator, with several firms emphasizing their gigawatt-scale capacity and pipeline.

• There is a growing recognition of the national security implications of blockchain infrastructure and the need for US-based control over key assets.

Business models and competitive advantages

• Teams with deep experience in energy, technology, and data center operations are viewed as core assets, driving innovation and execution.

• Companies are shifting from asset-light to asset-heavy models, acquiring and operating their own power generation and data center facilities to reduce costs and increase control.

• Retrofits of existing industrial sites into data centers are enabling faster, cheaper market entry compared to greenfield builds.

• Firms are developing flexible business models that allow for rapid switching between Bitcoin mining and AI/HPC workloads, optimizing for profitability and grid support.

• Capital discipline, long-term asset accumulation, and innovative financing strategies are emphasized as key to sustaining growth and weathering market cycles.

Market outlook and future trends

• AI and HPC demand is expected to drive significant growth in data center capacity, with multi-hundred megawatt campuses becoming the norm.

• The integration of Bitcoin mining and AI compute is seen as inevitable, with curtailability and grid flexibility providing mutual benefits.

• Companies anticipate increasing competition for power and land, with the ability to originate, develop, and commercialize new sites as a long-term moat.

• Edge computing and sovereign data requirements are emerging as important trends, influencing investment in specialized data center infrastructure.

• The sector is expected to see new entrants and evolving business models as traditional and non-traditional players seek to capture value in the expanding digital infrastructure market.