In a significant move redefining the landscape of digital assets, Galaxy Digital has announced a transformative $1.4 billion financing initiative aimed at converting its Helios Bitcoin mining facility into a cutting-edge artificial intelligence (AI) data center. This strategic shift underpins the firm’s ongoing partnership with the renowned GPU provider, CoreWeave Inc.
Funding Structure to Propel Data Center Transformation
On August 15, Galaxy Digital revealed the completion of a substantial debt facility. This capital injection is aimed at the development of their Helios data center campus situated in West Texas, designed to support the burgeoning needs of AI operations.
According to the company’s press release, Galaxy has already committed $350 million to cover equity requirements, with the debt facility poised to finance approximately 80% of the initial construction expenses for this ambitious project. The $1.4 billion loan is structured with a 36-month term backed by the assets tied to the pioneering phase of Helios’s transformation.
Mike Novogratz, the driving force behind Galaxy as its Founder and CEO, commented on the milestone, stating:
This financing represents a key advancement in our evolution of Helios into a state-of-the-art AI and high-performance computing (HPC) data center. We are geared up and optimistic to start supplying power to CoreWeave by early 2026, as we diversify Galaxy’s offerings beyond cryptocurrency into the larger AI infrastructure domain.
CoreWeave, known for its cloud GPU solutions and origins in Bitcoin mining, has recently entered a leasing arrangement with Galaxy. This agreement is expected to afford CoreWeave additional capacity, granting access to vital 260 MW of IT load dedicated to its AI and HPC needs.
Anticipated Revenue Growth from CoreWeave Partnership
The overarching objective is to elevate Helios into one of the world’s foremost and sophisticated AI data center facilities. Upon completion, Galaxy anticipates that the Helios campus will provide up to 3.5 gigawatts (GW) of power.
As CoreWeave utilizes the Helios infrastructure for its AI and HPC operations, Galaxy forecasts that this collaboration will yield an impressive annual revenue of over $1 billion throughout the duration of their 15-year agreement. This projection outlines a remarkable potential revenue total of $15 billion by the conclusion of the partnership with CoreWeave.
At the close of trading on Friday, shares of Galaxy Digital Inc. (GLXY) were priced around $26.09, signaling a drop of more than 8% within the same trading day. This fluctuation highlights the ongoing volatility in the tech and digital finance markets.
