Galaxy Digital Secures $1.4B Loan to Accelerate AI Datacenter Development
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Galaxy secures $1.4B loan to fast-track Texas Helios AI datacenter
Mike Novogratz's Galaxy Digital closed a $1.4 billion secured term loan facility to accelerate the development of its Helios artificial intelligence datacenter campus in Texas. On Friday, the company announced that the loan will cover about 80% of the construction costs for the first phase of the project, with Galaxy Digital contributing $350 million in equity. According to a US Securities and Exchange Commission filing, the loan is secured by all assets of Galaxy Helios I, a subsidiary of Galaxy Digital, and it will mature on Aug. 15, 2028. The capital will fund the expansion of the Helios AI datacenter to deliver power for AI workloads under a long-term agreement with the Graphics Processing Unit (GPU) cloud provider CoreWeave starting early 2026. The move highlights how digital asset firms leverage their capital-raising capabilities and repurpose infrastructure to tap into the increasing AI compute demand. This suggests that the broader compute and digital assets infrastructures may be converging. Galaxy also announced that the AI services provider CoreWeave brought its total commitment to a full 800 megawatts of approved capacity at the Helios campus. This means that CoreWeave is leasing power, cooling and physical infrastructure for its AI and high-performance computing (HPC) operations. Galaxy Digital said that it expects an annual revenue of over $1 billion from its CoreWeave deal, which has a 15-year term. If it goes as planned, the company will earn about $15 billion in total revenue from the contract. The company said it expects the Helios datacenter to have a power capacity of 3.5 gigawatts at full buildout. Minus its deal with CoreWeave, the data center will have an extra 2.7 gigawatts to sell to its clients. Related: Core Scientific's largest shareholder to vote against CoreWeave buyout offer Galaxy Digital's move into AI is part of a broader trend among crypto-native firms seeking new growth avenues as institutional capital goes to AI. CoreWeave, originally a crypto mining company, announced on July 7 that it acquired the miner Core Scientific in a $9 billion all-stock transaction to expand its data center capacity to support its AI and HPC workloads. Meanwhile, the Helios data center was also originally acquired for Bitcoin mining initiatives. In 2022, Mike Novogratz said that its Helios acquisition was made to increase its exposure to Bitcoin mining.
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Galaxy closes $1.4 billion project financing facility to accelerate Helios AI datacenter development
Galaxy Digital Holdings Ltd. is a digital asset and blockchain company. The Company serve a diversified client base, including institutions, startups, and qualified individuals. The Company provides financial platform spanning three complementary operating businesses: Global Markets, Asset Management, and Digital Infrastructure Solutions. Its offerings include, amongst others, trading, lending, strategic advisory services, institutional-grade investment solutions, proprietary bitcoin mining and hosting services, network validator services, and the development of enterprise custodial technology. The Company has a minority interest in Galaxy Digital Holdings LP (GDH LP). GDH LP is a technology-driven diversified financial services and investment management firm that provides institutions with a full suite of scaled financial solutions spanning the digital assets ecosystem.
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Galaxy Digital, a crypto-native firm, has secured a $1.4 billion loan to fast-track the development of its Helios AI datacenter in Texas, partnering with CoreWeave to deliver AI computing power.
Galaxy Digital's Strategic Move into AI Infrastructure
Galaxy Digital, a prominent player in the digital asset and blockchain space, has made a significant leap into the artificial intelligence (AI) sector. The company, led by Mike Novogratz, has secured a $1.4 billion loan to accelerate the development of its Helios AI datacenter campus in Texas 1.
Financing and Project Details
The secured term loan facility will cover approximately 80% of the construction costs for the first phase of the Helios project. Galaxy Digital is contributing an additional $350 million in equity, demonstrating its commitment to the venture. The loan, set to mature on August 15, 2028, is secured by all assets of Galaxy Helios I, a subsidiary of Galaxy Digital 1.
Partnership with CoreWeave
A key component of this development is Galaxy's partnership with CoreWeave, a GPU cloud provider. Under a long-term agreement, the Helios AI datacenter will deliver power for AI workloads to CoreWeave starting in early 2026. CoreWeave has committed to a full 800 megawatts of approved capacity at the Helios campus, leasing power, cooling, and physical infrastructure for its AI and high-performance computing (HPC) operations 1.
Financial Projections and Capacity
Galaxy Digital anticipates substantial returns from this venture:
- Annual revenue expectation: Over $1 billion from the CoreWeave deal
- Total projected revenue: Approximately $15 billion over the 15-year contract term
The Helios datacenter is expected to have a power capacity of 3.5 gigawatts at full buildout, with 2.7 gigawatts available for additional clients after accounting for the CoreWeave agreement 1.
Industry Trends and Strategic Shift
This move by Galaxy Digital exemplifies a broader trend in the crypto industry. As institutional capital increasingly flows towards AI, crypto-native firms are leveraging their expertise and infrastructure to tap into the growing demand for AI compute power. This shift suggests a potential convergence between digital asset infrastructure and broader compute capabilities 1.
Background and Future Outlook
Galaxy Digital's diversification into AI is particularly noteworthy given its roots in the cryptocurrency sector. The company has historically focused on providing a range of digital asset and blockchain services, including trading, lending, and investment solutions 2. The Helios datacenter, originally acquired for Bitcoin mining initiatives, is now being repurposed to meet the surging demand for AI computing power 1.
This strategic pivot mirrors similar moves in the industry, such as CoreWeave's recent acquisition of Core Scientific, another indication of the growing synergy between crypto mining infrastructure and AI computing needs 1.
As Galaxy Digital embarks on this new venture, it positions itself at the forefront of a rapidly evolving technological landscape, bridging the worlds of cryptocurrency and artificial intelligence. The success of this project could potentially set a precedent for other firms in the digital asset space looking to diversify and capitalize on the AI boom.
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