- Galaxy Digital receives $460 million from major asset manager.
- Investment supports expansion of data center infrastructure.
- Shares rise post-announcement, showcasing market approval.
Galaxy Digital received a US$460 million investment from a major global asset manager to bolster its data center operations by issuing new shares and selling executive-held shares.
This sizable investment underscores strong institutional faith in Galaxy’s shift from Bitcoin mining to AI infrastructure, resulting in a 3% post-market rise in Galaxy shares.
Galaxy Digital, a renowned digital asset and data center firm, has received a strategic investment of $460 million from a major, undisclosed asset manager. This funding supports its pivot from Bitcoin mining to AI infrastructure. CEO Mike Novogratz welcomes this development.
The investment involves the issuance of 9,027,778 new Class A shares and the sale of 3,750,000 shares by executives, priced at $36 per share. This deal highlights institutional confidence in Galaxy’s shift toward AI and high-performance computing infrastructure.
Following this announcement, Galaxy shares increased by 3% in post-market trading, reflecting positive market reactions. The funds are allocated for expanding the Helios data center, aiming for 133 megawatts by the first half of 2026.
This equity-based deal emphasizes the transition to AI and HPC, with no direct impact on cryptocurrencies like BTC or ETH. It represents a shift in focus from digital asset mining to data center operations, aligned with broader industry trends.
The investment strengthens Galaxy’s balance sheet, providing financial flexibility for future ventures. However, there’s no new information on DeFi protocols or blockchain activities affected by the deal. As a significant corporate move, it refrains from engaging directly with on-chain assets.
The transaction follows a trend of crypto miners pivoting to AI and data centers. Historical trends suggest a natural progression as mining margins decline. Galaxy’s positioning in digital assets and AI infrastructure sets a precedent, mitigating traditional mining challenges.
Mike Novogratz, Founder and CEO, Galaxy Digital, “Strengthening our balance sheet is essential to scaling Galaxy’s data center business efficiently while maintaining the financial flexibility to support future growth. Having one of the world’s largest and most sophisticated institutional investors make such a significant investment in our company will support our strategic vision and our ability to build leading businesses across digital assets and data centers.”
