GLXY
Galaxy Digital (TSX:GLXY) lives at the intersection of crypto and the new artificial intelligence (AI) power race. It operates an institutional digital asset platform for trading, lending and asset management, and is also building data center infrastructure through the Helios campus in West Texas. That sounds diversified, but it could also be doubling down on the reasons stock prices are rising. Crypto sentiment can cause rapid movement, and a data center headline could set it in motion again by lunch.
Over the past year, Helios has attracted the most attention. Galaxy secured a $1.4 billion project financing facility and said it aims to deliver the first phase of power to CoreWeave in early 2026. CoreWeave has committed to the full 800 megawatts (MW) of approved power capacity, and Galaxy has framed the deal as average annual revenues of more than $1 billion over 15 years, assuming full utilization. In January 2026, Galaxy also said ERCOT approved an additional 830 MW, bringing Helios’ approved utility-contracted capacity to more than 1.6 gigawatts (GW).
That momentum could make crypto stocks seem inevitable. The latest earnings remind you that this is not the case. Galaxy reported a net loss of $482 million in Q4 2025, with diluted earnings per share (EPS) of ($1.08), linking the damage mainly to falling digital asset prices and a sharp decline in overall crypto market value during the quarter. The valuation looks tempting at first glance, trading at 38 times earnings, but that multiple won’t save you if crypto remains weak, if trading slows, or if Helios runs late or goes over budget.
HUT
Cabin 8 (TSX:HUT) wears a different costume, but plays the same game. It started as one Bitcoin miner, and it is now positioning itself as a power-first platform that can sell energy and data centers and respond to demand for AI. The market loves that story, especially as investors chase anything that looks like picks and shovels for the AI boom. The risk is that the story is ahead of the money.
The biggest headline came in December. Hut 8 signed a 15-year lease for a 245 MW AI data center at the River Bend campus, with the deal valued at approximately $7 billion and construction of the first phase expected to be completed in early 2027. It also previously talked about a development pipeline of more than 1.5 GW of new sites. The ambition is great, but multi-year projects lead to delays, cost increases and financing problems.
The numbers show why this crypto stock can be exciting and scary. Hut 8 reported third-quarter 2025 revenue of $83.5 million and net profit of $50.6 million, following second-quarter revenue of $41.3 million and net profit of $137.5 million. This swing indicates how much results could depend on Bitcoin prices and accounting items, even if management sells a more stable AI future. In terms of valuation, it trades at 29 times earnings at the time of writing, so investors are paying for growth that has yet to materialize, and if the crypto stock funds expand with equity, dilution is possible.
In short
So yes, these two can be overhyped. Both are committed to mega-themes that attract emotional money: crypto rebounds, AI computing and scarce power. Both also require confidence in forecasts and planning, plus markets that behave like commodities. If crypto prices drop, or a major partner delays, or funding tightens, the downside could arrive quickly and loudly. For example, a $100,000 “sure thing” can start to look like a slow-motion wipeout.
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