What happens to $GLXY in a worst-case $CRWV bankruptcy scenario?
With the concerns surrounding CoreWeave's financial position, I've been looking at what an outright bankruptcy would actually mean for Galaxy.
Firstly, Galaxy owns the Helios infrastructure. The land, buildings, electrical infrastructure and cooling systems. CoreWeave is the tenant.
If CoreWeave went bankrupt and its leases were terminated, Galaxy wouldn't suddenly lose the hundreds of megawatts of developed, grid-connected data centre capacity.
The GPUs are a separate matter, but the underlying infrastructure would remain Galaxy's, subject to its financing arrangements.
Galaxy could then look to lease that capacity to another hyperscaler or AI infrastructure provider, potentially Microsoft, Google, Amazon or someone else entirely.
There would obviously be disruption to rental income, debt servicing and potentially the development timeline, but none of that changes the fundamental value of having large-scale, energised AI infrastructure in a market where power availability is increasingly constrained.
The real question would be how quickly Galaxy could secure another tenant and on what terms.
Personally, I think Galaxy would be in a much stronger position than some might expect, even under this extreme scenario. CoreWeave going bankrupt wouldn't mean Helios suddenly becomes worthless. The infrastructure would still be there, and so would the demand for power.
And looking ahead to 2027, I think there's another reason to be optimistic. If we see the crypto market recovery I'm expecting, Galaxy effectively has a double-barrelled investment narrative. Growing exposure to AI infrastructure alongside a potentially significant recovery in its digital asset businesses.
Two major growth narratives under one ticker, with either capable of driving a re-rating.
Long $GLXY.
A time of chaos where new paradigms are born.
The old system must be destroyed to make way for the new.
But at what cost? How many lives and how much private wealth will go down with it?
You need truly novel thinking to make it through such times.
Lovely world we're living in.
The internet isn't safe.
Gold might be manufactured in labs.
The dollar and euro keep losing purchasing power.
And even Bitcoin may not be immune to the rise of quantum computing.
Every "safe haven" comes with a new existential threat.
Fuck yes.
@KontraInvest@investseekers Makes logical sense. Was always going to happen once people figured out how to stay slim. Shame they had to take an Injection/pill though.
@timothy_jshaw All 3 reported mining revenue in the previous quarter. $66.7m for IREN..
I also said historically correlated. I think crypto will provide a strong tailwind alongside the obvious AI investment cases.
Agreed. Especially on names like $IREN, $CIFR and $WULF which have historically been very correlated to the crypto cycles.
Can see these stocks taking off as crypto moves back higher.
Hearing people trying to time recent bottoms here on $IREN - $CIFR - $NBIS - $CRWV and more tickers.
Many of these names are much closer to a bottom rather than a top, so right there you want to be focused on adding mainly.
Can they potentially still see lower yes. But their R/R looks very appealing now.
Crypto space is moving. That is about to leave higher.
@alexanderrX_ We are professional money wasters and our politicians are just posh scammers.
We're a tiny country with an economy that punches way above our size and can't even build a railway.