Galaxy Digital Secures $460M to Fuel Expansion of AI Data Center Helios in Strategic Pivot
- What's the Big Deal About Galaxy's $460 Million Raise?
- How Will Galaxy Spend This New War Chest?
- What's the Backstory Behind Helios?
- Why Are Crypto Firms Suddenly Obsessed With AI Infrastructure?
- What Does This Mean for Galaxy's Financial Position?
- Who's Bankrolling This Vision?
- When Will Investors See Results?
- Your Galaxy Digital AI Pivot Questions Answered
Mike Novogratz's crypto-native firm is making waves again - this time with a $460 million private investment to transform a former bitcoin mining site into a cutting-edge AI data hub. The move signals a broader industry shift as crypto infrastructure players chase the booming demand for computational power. Here's why this deal matters beyond the headline numbers.
What's the Big Deal About Galaxy's $460 Million Raise?
Galaxy Digital just pulled off what institutional investors call a "smart money" move. They've secured $460 million through a private placement deal with one of the world's largest asset managers - the kind of investor that typically doesn't dabble in crypto-adjacent plays. The transaction involved selling 12.78 million Class A shares at $36 apiece, with about 9 million coming directly from the company and 3.75 million from top executives' holdings. What caught my attention? The pricing represents just a 7% discount to Galaxy's 30-day average, suggesting strong demand despite crypto's recent volatility.
How Will Galaxy Spend This New War Chest?
The capital injection has clear targets: 1) General corporate purposes (Wall Street speak for "keeping options open"), and 2) Accelerating development of the Helios data center campus in West Texas. By Q2 2026, the facility should deliver 133MW of computing capacity - enough to power about 100,000 homes - dedicated to AI and high-performance computing workloads. Having tracked infrastructure plays since the 2021 mining boom, I'm struck by how quickly repurposing projects are gaining traction. Galaxy's pivot mirrors Core Scientific's recent AI hosting deals and reflects what analysts now call "the great compute migration."
What's the Backstory Behind Helios?
Helios isn't some half-baked concept - it's been in the works since August 2025 when Galaxy secured a $1.4 billion loan facility specifically for this project. The numbers are staggering: CoreWeave has committed to taking all 800MW of planned capacity through a 15-year partnership that Galaxy estimates will generate over $1 billion in annual revenue. For context, that's roughly 40% of Nvidia's current data center revenue - from a single facility. Novogratz told investors the project combines "Bitcoin mining's energy expertise with AI's insatiable demand," a thesis that's gaining credibility as power becomes the new oil in tech.
Why Are Crypto Firms Suddenly Obsessed With AI Infrastructure?
The math is brutally simple: AI compute demand is growing at 10x the rate of supply, according to TradingView data. crypto companies sit on three critical assets - access to power, experience managing compute loads, and existing data center footprints. Galaxy's Texas site was originally permitted for 300MW of mining capacity. Retrofitting such facilities for AI can happen 30-50% faster than greenfield projects, per industry estimates. As one hedge fund manager quipped to me last week: "They're trading pickaxes for rocket ships."
What Does This Mean for Galaxy's Financial Position?
Between the $460 million equity raise and $1.4 billion debt facility, Galaxy has effectively secured its balance sheet through 2027. The company's stock (GLXY on TSX) has outperformed pure-play crypto stocks by 18% since the AI pivot began. Novogratz emphasized this strengthens their hand in both digital assets and infrastructure - a rare "have your CAKE and eat it too" scenario in today's bifurcated markets. Though as always in crypto, execution risk remains.
Who's Bankrolling This Vision?
While Galaxy hasn't named the "top-tier asset manager" behind the $460 million investment, market chatter points to firms like Brookfield or Blackstone. The involvement of such institutional heavyweights validates Galaxy's transition strategy. As the BTCC research team noted in their latest sector report: "When traditional finance starts writing nine-figure checks to crypto-native firms for non-crypto ventures, it signals a maturation of the industry's business models."
When Will Investors See Results?
Mark your calendars: The Helios facility's first 133MW phase should come online by June 2026, with the investment expected to close by October 17, 2025 pending Toronto Stock Exchange approvals. Galaxy's timeline appears aggressive but achievable - their Texas team already has experience bringing large-scale compute projects online during the mining boom years.
This article does not constitute investment advice.
Your Galaxy Digital AI Pivot Questions Answered
How much did Galaxy Digital raise for its AI data center?
Galaxy secured $460 million through a private placement of 12.78 million shares at $36 per share, with the transaction expected to close by mid-October 2025.
What will Galaxy use the $460 million for?
The funds will accelerate development of their Helios data center campus in Texas and provide general corporate capital, with the first 133MW of AI compute capacity planned for 2026.
How does this relate to Galaxy's $1.4 billion loan?
The August 2025 debt facility finances Helios' construction, while this equity raise strengthens Galaxy's balance sheet and provides additional growth capital.
Why is Galaxy moving from crypto to AI infrastructure?
The company is leveraging its expertise in large-scale compute operations to address the AI industry's critical shortage of data center capacity and power access.
