Galaxy Digital, a major player in digital assets, is making a bold move. The firm, led by Mike Novogratz, recently announced a significant investment. This cash infusion will help transform one of its Bitcoin mining farms in Texas into a high-powered center for artificial intelligence (AI) computing.
The company revealed a strategic investment of $460 million. This money comes from “one of the largest and most sophisticated institutional investors in the world,” though the investor’s name was not disclosed. A big part of this fresh capital will go towards expanding Galaxy’s Helios data center campus in Texas. The goal is clear: turn a former Bitcoin mining operation into a hub specifically designed for AI’s massive computing needs.
🚨 Galaxy Digital transforms its Bitcoin mining farm in Texas into an AI center 🚨
$460 million investment.
The facility will become a high-performance hub for AI computing.
Expected to generate more than $1 billion in annual revenue.… pic.twitter.com/6bsSVksPAq
— Diario฿itcoin (@Blaze Trends)
Details of the deal show Galaxy will issue about 9 million new shares. Company executives, including Novogratz, will also sell roughly 3.8 million shares. The total transaction values each share at $36. The deal is set to close on October 17, after receiving approval from the Toronto Stock Exchange (TSX). Galaxy stated the funds will be used for general company needs and to push forward with the Helios campus’s next growth stage.
Turning a Mining Site into an AI Powerhouse
This initiative marks a big shift for Galaxy. The company is looking to move beyond just cryptocurrency mining. It aims to build a strong presence in AI infrastructure. This comes as demand for powerful computing grows rapidly.
The Helios campus sits in Dickens County, Texas. Galaxy bought it in 2022 from Argo Blockchain for $65 million. Back then, it was one of North America’s largest Bitcoin mines. Now, the site is being retooled for high-performance AI servers. A 15-year lease agreement is in place with CoreWeave, an AI cloud provider. This partnership is expected to bring in more than $1 billion in annual revenue for Galaxy.
The first part of this project, which can power tens of thousands of top-tier AI servers, should start running in the first half of 2026. Future expansions will make Helios one of the biggest data centers in the United States. This move promises a steady income stream for Galaxy. It makes the company less reliant on the ups and downs of cryptocurrency markets. A $1.4 billion credit line secured earlier supports this site conversion effort.
Novogratz underlined the importance of this investment. He stated, “Strengthening our balance sheet is essential for efficiently scaling Galaxy’s data center business. It also maintains financial flexibility for future growth.” He added that having such a large and experienced institutional investor back the company “will support our strategic vision and our ability to build leading businesses in digital assets and data centers.”
Galaxy’s Expansion into High-Performance AI
This announcement comes at a crucial time for the industry. After Bitcoin’s fourth halving in April 2024, which cut block rewards in half, many mining companies have searched for new ways to keep their energy-intensive operations going. Galaxy is leading this trend. It is repurposing mining assets for AI infrastructure. This blends its crypto knowledge with the surge in high-performance computing (HPC). It also marks the latest step in Galaxy’s broader AI expansion.
Galaxy’s shares, listed on Nasdaq since May, closed below $40 on Friday. This followed an intraday rally. The market had been worried about proposed Chinese tariffs from former President Donald Trump. However, after the news broke, shares jumped 1.5% in after-market trading.
This transformation does more than just diversify Galaxy’s income. It places the firm at the heart of where technologies meet. With Helios as its main point, Galaxy wants to become a key player in providing hybrid infrastructure. This will attract more institutional partners in a market expected to grow hugely.