YB new stock pitches (Tue, May 27)

Galaxy Digital Inc. (GLXY.TO) has 800MW of approved power at Helios with 1.7GW under study, expecting approval in tranches within 'single digit months.' Of the current capacity, 600MW is contracted to CoreWeave on a 15-year deal, projected to generate $900M in annual revenue at 90% EBITDA margins. If Galaxy secures approval for another 800MW and contracts the remaining 1000MW under similar terms, it could achieve $2.4B in annual revenues potentially by 2025. With a current market cap of ~$8.5B, significant upside exists if Galaxy executes well at Helios. The company is also exploring 40+ Bitcoin mining sites for potential AI data center conversion. Beyond its data center business, Galaxy operates a crypto trading desk offering various services, provides investment banking in the crypto space (facilitating Bitstamp's sale to Robinhood), manages $7B in assets, and offers staking/tokenization services. Key risks include the extended buildout timeline (2026-2029) and the need to secure $11-12B in financing (planned as 80% debt, 20% equity).

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Frontera Energy (FEC.TO) is a Colombian oil company trading at a significant discount to its asset value, with Catalyst/Gramercy controlling 75% of shares. The sum-of-parts valuation includes: 35% stake in ODL pipeline generating $100M EBITDA, E&P operations worth ~$600M plus $50M in potential synergies, $200M cash, and Puerto Bahía port producing $35M EBITDA. Despite a failed Guyana exploration that cost over $200M (now valued at zero), the company continues generating solid free cash flow from Colombian operations. At $65 Brent, the company produces $55M-$67M in after-tax FCF with $190M capex. The recent C$12 tender offer (25% return) signals management's intent to unlock value, likely through monetizing E&P operations via sale or merger for $7-$8/share and potentially selling the port for $4+/share, which could yield $11-$12 in capital return within a year. The stock remains deeply discounted due to low liquidity, Colombian market sentiment, and the Guyana failure.

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Cyviz AS (CYVIZ.OL) provides NATO-grade secure collaboration and control room solutions used by governments, defence agencies, and corporations worldwide, with major clients including Microsoft, Accenture, Boeing, and the U.S. Navy. The company generated NOK 624 million in trailing 12-month revenue (+27% in Q1 2025), maintains a 50.5% gross margin, and holds an order backlog of NOK 338 million. Cyviz is transitioning from a hardware integrator to a software platform provider, targeting 25% of revenue from Annual Recurring Revenue by 2030 and aiming for a 25% EBITDA margin. Despite securing a NATO-grade defense contract with a European government in Q1 2025, validating its security capabilities, the stock remains undercovered with limited analyst attention. Key risks include tight liquidity (only NOK 11.9 million in cash), negative operating cash flow of NOK -17.6 million in Q1 2025, low trading volume making position building difficult, and execution challenges in the defence market's long sales cycles.

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