Galaxy Digital Secures $460M to Launch Texas AI Data Center

Galaxy Digital, led by Mike Novogratz, announced it has secured a $460 million private investment from one of the world’s largest asset managers. This capital injection aims to convert its former Bitcoin mining operation in Texas into a cutting-edge artificial intelligence data center. The move underlines the expanding role of blockchain companies in the AI ecosystem, leveraging robust infrastructure to support high-performance computing workloads essential for emerging AI and DeFi applications.

As part of the deal, the asset manager will purchase 12.77 million Class A shares at $36 each. The funds will primarily be used for expanding Galaxy’s Helios campus, which is slated to deliver 133 megawatts of IT capacity by early 2026. The transaction is expected to close around October 17, 2025, subject to approval from the Toronto Stock Exchange.

Building upon its recent $1.4 billion loan secured in August to fund 80% of the Helios expansion, Galaxy is solidifying its commitment to AI infrastructure. The partnership with AI cloud provider CoreWeave, which will provide compute power for AI and high-performance computing tasks from 2026, is projected to generate over $1 billion annually in revenue, totaling around $15 billion over the entire 15-year contract period.

The Helios data center, at full capacity, will feature a 3.5-gigawatt power usage, making it one of North America’s largest AI-focused infrastructure projects. CoreWeave has committed to leasing 800 megawatts, while Galaxy plans to lease the remaining 2.7 gigawatts to additional clients, reflecting a strategic move into the AI infrastructure market that complements its broader digital assets initiatives.

More cryptocurrency companies steer toward AI opportunities

The pivot toward AI infrastructure is driven by record-high Bitcoin hashrate levels, which diminish mining rewards and prompt firms to explore diversified revenue streams. Crypto-native firms like CoreWeave, originally a cryptocurrency mining enterprise, are now heavily investing in AI compute capabilities. In July, CoreWeave acquired Core Scientific in a $9 billion all-stock deal, expanding its capacity to support AI and high-performance computing workloads, further indicating the crypto sector’s shift toward AI as a growth vector.

This evolving landscape highlights the dynamic intersection of blockchain technology and artificial intelligence, with more crypto firms investing heavily in AI infrastructure to capitalize on emerging markets and technological advancements. As digital assets continue to mature, their integration with AI-driven solutions is poised to reshape the future of both industries, fostering innovation and new business models.

This article was originally published as Galaxy Digital Secures $460M to Launch Texas AI Data Center on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.