Galaxy Digital: AI Data Centers Outperform Bitcoin Mining in Profitability

19 May, 2025, 07:29 AM

Galaxy Digital's strategic shift towards AI data centers is poised to significantly boost its profitability, surpassing that of Bitcoin mining. Rittenhouse Research's analysis highlights the inherent challenges in BTC mining, noting a 50% profitability reduction with each halving event. This dependence on bullish BTC prices and advanced chip technology creates substantial uncertainty for investors. In contrast, AI data centers offer a more stable and predictable revenue stream. Galaxy Digital's decision to leverage its Texas-based data center for AI infrastructure reflects a forward-thinking approach. By reducing its Bitcoin mining operations, the company can capitalize on the growing demand for AI computing power, ensuring long-term financial stability and higher profit margins. The AI sector's consistent cash flow potential makes it an attractive alternative to the volatile cryptocurrency mining landscape. ```