- Galaxy Digital secures $1.4 billion for AI and HPC campus.
- Shift from crypto mining to AI infrastructure.
- Expected $1 billion annual revenue from CoreWeave lease.
Galaxy Digital secures a $1.4 billion financing deal to convert its West Texas Helios campus into an AI and HPC facility, shifting focus from crypto mining.
This move signifies Galaxy’s diversification into AI infrastructure, potentially boosting long-term revenues despite immediate market skepticism reflected by a drop in stock price.
Galaxy Digital has finalized a $1.4 billion financing deal to repurpose the Helios campus in West Texas. The shift from crypto mining to AI and high-performance computing marks a strategic pivot aimed at tapping into growing demands.
Involved entities include Galaxy Digital and CoreWeave Inc., an AI cloud provider, with a focus on delivering critical infrastructure. The transformation is spearheaded by Mike Novogratz, Galaxy’s CEO, signaling a diversification beyond cryptocurrency.
“This financing marks a major milestone in our transformation of Helios into a next-generation AI and HPC datacenter campus. We’re on track and excited to deliver the first phase of power to CoreWeave beginning in early 2026. This project is a key step in diversifying Galaxy’s business model as we expand beyond crypto and into the broader AI infrastructure space.” – Mike Novogratz, Founder & CEO, Galaxy Digital
Market Reaction
The market reaction was immediate as Galaxy Digital’s stock decreased by approximately 8.7%. Despite initial skepticism, the longstanding lease arrangement with CoreWeave is expected to generate significant revenue, boosting industry confidence long-term.
Financial implications include an 80% debt funding structure and $350 million equity infusion from Galaxy. This move highlights Galaxy Digital’s expansion beyond crypto, aligning with broader industry trends towards AI and HPC ventures.
Strategic Expansion
Expanding into AI infrastructure could lessen reliance on volatile crypto markets, offering stability. The shift reflects a broader industry move toward AI as regulatory uncertainty increases in traditional crypto sectors.
The project aligns with historical trends of crypto firms pivoting to datacenter ventures. Galaxy Digital anticipates robust returns and a fortified market position, amid rising demand for AI resources and technological advancements.
