Galaxy Digital Secures $460M Investment to Convert Bitcoin Mine into AI Data Center

today / 10:27

Galaxy Digital, led by Mike Novogratz, has raised $460 million from one of the world's largest asset managers through a private investment, accelerating the transformation of its former Bitcoin mining site in Texas into a massive AI data center. The deal involves the purchase of 12.77 million Class A shares at $36 per share, with proceeds earmarked for general corporate use and the expansion of its Helios campus in Dickens County.

The Helios facility, expected to deliver 133 megawatts of IT capacity in early 2026, is part of a broader 15-year contract with CoreWeave, an AI cloud infrastructure provider. Under this agreement, Galaxy will supply compute power for AI and high-performance computing workloads, generating over $1 billion in annual revenue, totaling approximately $15 billion over the term. At full buildout, Helios will have a 3.5-gigawatt capacity, with 800 megawatts committed to CoreWeave and the remainder leased to other clients.

This investment follows Galaxy's $1.4 billion loan facility secured in August 2024 to fund about 80% of the Helios buildout. The transaction is pending approval from the Toronto Stock Exchange and is expected to close around October 17, 2025. Mike Novogratz emphasized that this move strengthens Galaxy's balance sheet and supports its strategic vision in digital assets and data centers, noting the significance of institutional investor confidence.

The pivot reflects a growing trend among crypto-native firms shifting to AI infrastructure due to reduced Bitcoin mining profitability post-halving, where rewards dropped to 3.125 BTC. Galaxy's stock (GLXY) initially surged to an all-time high above $44 on the news but closed at $39.38, down 6.73%, amid broader market pressures.