• Galaxy Digital raises the capital amount of $460M as part of expanding its Helios AI data centre in Texas.
• The transaction enhances the transition of Galaxy towards AI and high-performance computing instead of crypto mining.
• Galaxy is backed by institutions that reinforce Galaxy position in digital assets and data Industrial.

Galaxy Digital has successfully concluded a deal of $460 million in terms of a private investment with a leading assets management company in the world. The aim of the funding is to consolidate the financial base of the company and accelerate the growth of the Helios data center based at Texas. It also will help Galaxy shift the cryptocurrency mining more to artificial intelligence and high-performance computing activities.

The institutional investor, as part of the deal, will purchase 12.77 million Class A shares at $36 a share. Among them, 9,027,778 are Galaxy Digital newly issued shares. While 3,750,000 shares shall be sold by the most respected company executives like Mike Novogratz. The transaction is likely to be closed on the 17th of October subject to the approval of the Toronto Stock Exchange.

Helios Expansion Gains Momentum

According to Novogratz, the investment was a milestone to the company. He observed that the support of one of the world leading investors gives credence to long term orientation of Galaxy Digital. The capital injection, he asserted, will assist in faster expansion of Galaxy as a primary name in digital managing assets and developing data infrastructures.

Also Read: Solana (SOL) Price Eyes $300 as Galaxy Digital Buys 1.2 Million SOL

The proceeds of the deal will be utilized in expanding the Helios campus. The land came into the hands of the company in 2022 after acquiring it at the now-handy Bitcoin mining facility under the Argos. A massive AI and high-performance computing center is being transformed into it. By the early 2026, the center will offer 133 megawatts of IT capacity.

In August, Galaxy obtained a financing package of $1.4 billion that would fund nearly 80 percent of the cost of the Helios project. About the same period, the company signed a 15-year agreement with a cloud computing AI provider CoreWeave. According to the contract Galaxy would commence provision of computing power in 2026. 

Helios has already agreed to lease 800 Megawatts of its 3.5 gigawatts of approved capacity to CoreWeave. The remaining 2.7 gigawatts will be sold to more customers when Galaxy Digital increases its AI services. Helios will be one of the biggest AI infrastructures of North America and given the high demand of compute power around the world, it is set to win over many users.

Galaxy Digital aligns with Industry Shift Toward AI Computing

The move of Galaxy Digital toward AI and high-performance computing is in line with a wider trend adopted by crypto-native businesses. Most of them are redefining their mining efforts towards the increased demand of data processing capacity. With Bitcoin profits dwindling to all-time lows over network hashrates, companies are considering AI and cloud computing to their bottom-line earning.

The Helios change is a radical move on the part of the Galaxy. The company is looking to use the mining properties as a new source of computational power in the global demand. Galaxy Digital aims to take its own significant share in the world compute market by concentrating on AI workloads, systems-based on high performance.

The investment could be strategic and financial as viewed by the executives. It further improves liquidity and promotes a broadening of activities beyond the crypto-related activities. With great force of significant institutional capital, Galaxy Digital would likely spur on the development of Helios and solidify their corporate base.

This change is a testament to changes occurring in the industry. A large data center of Core Scientific was purchased in an all-stock merger in July by CoreWeave, which used to be a crypto-miner. The relocation indicates the ever-increasing intersection of artificial intelligence computing and cryptocurrency infrastructure.