Galaxy Digital secures $460 million to expand its Helios data center.

crypthub

3 days ago

Strategic Investment and Expansion

Galaxy Digital secured $460 million from a private investment firm, significantly boosting its balance sheet. This investment supports the company’s expansion into data center operations and allows for financial flexibility for future growth. Executives, including CEO Mike Novogratz, participated in the share sale, demonstrating confidence in the company's direction.

Conversion of Bitcoin Mining Facility

The company is transforming its Bitcoin mining facility in Texas into a large-scale artificial intelligence data center. This conversion is part of a 15-year lease agreement with CoreWeave, for which Galaxy Digital will provide 800 MW of power. The Helios facility, acquired from Argo Blockchain, now supports AI and high-performance computing operations.

Data Center Capabilities and Future Outlook

The Helios data center, situated on 160 acres in Texas, is poised to deliver 133 MW of power by mid-2026. Galaxy Digital’s strategic shift leverages existing power infrastructure from Bitcoin mining to meet the growing demand for AI computing. The company sees Bitcoin miners as ideally suited to provide power for data centers, diversifying revenue streams.

Financial Details and Market Impact

The company’s stock, GLXY, briefly reached an all-time high following the investment news. The agreement, pending Toronto Stock Exchange approval, is expected to finalize on October 17. Previously, Galaxy Digital secured $1.4 billion in debt financing for Helios’s retrofit and expansion.