Galaxy Digital (NASDAQ: GLXY) CEO Mike Novogratz said that the company “will be in negotiation and conversation with” potential hyperscaler tenants for the 830 MW expansion at its Helios data center, according to a CNBC interview.
Galaxy (NASDAQ: GLXY) shares rose 13% Thursday following ERCOT approval for a 830 MW expansion at the Helios site in Texas.
With the latest expansion, Helios’ total power capacity is now just over 1.6 GW. Galaxy currently has 800 MW of Helios’ capacity allocated to CoreWeave(NASDAQ: CRWV) in a 15-year deal valued at $15 billion.
Novogratz indicated that Galaxy could be under negotiations with “5 or 6 [hyperscaler] players” for the newly approved power tranche.
“There’s a lineup of people that want power. There’s huge demand from the hyperscalers who want power [before] 2030. And so we will be in negotiation and conversations with – you can guess the five or six players,” Novogratz said during the interview.
Investment analysts have begun reassessing the company’s valuation based on these infrastructure assets. A recent Morgan Stanley report valued the data center deal at approximately half of the company’s current share price. Novogratz stated that the market typically assigns higher valuation multiples to stable infrastructure revenue compared to cryptocurrency trading.
Attention during the interview shifted to federal regulations affecting the cryptocurrency division of the business. Novogratz predicted the Senate would pass a regulatory bill within “the next few weeks” due to bipartisan momentum. He cited earnest efforts by both Democratic and Republican senators to finalize the complex legislation.
The CEO identified resistance from the banking sector as a primary obstacle to the bill’s passage. Banks oppose allowing stablecoins to yield interest because they fear losing low-cost customer deposits to higher-yielding cryptocurrency alternatives. Novogratz noted that banks currently pay minimal interest on savings accounts while earning approximately 4% on deposits at the Federal Reserve.
Traditional financial institutions argue that interest-bearing stablecoins could cause significant deposit flight. Novogratz countered that restricting these products merely protects bank monopolies and stifles financial innovation. He argued that current United States regulations inadvertently favor offshore issuers like Tether by limiting domestic competition.
The executive acknowledged that any final legislation would likely involve significant compromise. He suggested the passed bill might restrict yield on payment stablecoins to appease banking interests. Novogratz maintained that establishing a regulatory framework remains essential for the industry despite these potential limitations.
