Galaxy Digital Secures $1.4B Loan to Accelerate Texas Helios AI Datacenter Expansion

Mike Novogratz’s Galaxy Digital has closed a $1.4 billion secured term loan facility to fast-track the development of its Helios artificial intelligence (AI) datacenter campus in Texas. The company announced that the loan will cover approximately 80% of the construction costs for the first phase of the project, with Galaxy Digital contributing $350 million in equity. According to a U.S. Securities and Exchange Commission filing, the loan is secured by all assets of Galaxy Helios I, a subsidiary of Galaxy Digital, and will mature on August 15, 2028. The capital raised 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 in early 2026. This move highlights how digital asset firms are leveraging their capital-raising capabilities and repurposing infrastructure to meet the growing demand for AI compute power. It signals a convergence between the broader compute and digital asset infrastructures.

Galaxy Digital Expects $1 Billion in Annual Revenue from CoreWeave Partnership

Galaxy Digital also announced that CoreWeave has committed to a full 800 megawatts of approved capacity at the Helios campus. CoreWeave is leasing power, cooling, and physical infrastructure for its AI and high-performance computing (HPC) operations. Galaxy Digital expects annual revenue exceeding $1 billion from its 15-year contract with CoreWeave. If the deal proceeds as planned, the company anticipates generating about $15 billion in total revenue over the contract term. The Helios datacenter is projected to have a power capacity of 3.5 gigawatts at full buildout. After fulfilling the CoreWeave agreement, the data center will have an additional 2.7 gigawatts available to sell to other clients.

Crypto Firms Expanding into AI Infrastructure

Galaxy Digital’s expansion into AI infrastructure is part of a broader trend among crypto-native firms seeking new growth avenues as institutional capital increasingly flows into 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 for AI and HPC workloads. The Helios data center itself was initially acquired for Bitcoin mining initiatives. In 2022, Mike Novogratz described the Helios acquisition as a transformative move to increase Galaxy Digital’s exposure to Bitcoin mining.

Frequently Asked Questions (FAQ)

About the Loan and Expansion

Q: What is the total amount of the secured term loan facility secured by Galaxy Digital? A: Galaxy Digital has secured a $1.4 billion secured term loan facility. Q: What is the purpose of this loan? A: The loan is intended to accelerate the development of its Helios artificial intelligence (AI) datacenter campus in Texas. Q: What percentage of construction costs does the loan cover? A: The loan covers approximately 80% of the construction costs for the first phase of the Helios project. Q: What is the maturity date of the loan? A: The loan will mature on August 15, 2028. Q: Who is the primary partner for the expansion? A: The expansion is in partnership with CoreWeave, a GPU cloud provider. Q: When will the datacenter start delivering power for AI workloads? A: The datacenter is slated to begin delivering power for AI workloads starting in early 2026.

CoreWeave Partnership Details

Q: What is CoreWeave's commitment to the Helios campus? A: CoreWeave has committed to leasing the full 800 megawatts of approved capacity at the Helios campus. Q: What services does CoreWeave lease at the Helios campus? A: CoreWeave is leasing power, cooling, and physical infrastructure for its AI and high-performance computing (HPC) operations. Q: What is the projected annual revenue from the CoreWeave partnership? A: Galaxy Digital expects annual revenue to exceed $1 billion from its 15-year contract with CoreWeave. Q: What is the total projected revenue over the contract term with CoreWeave? A: The company anticipates generating approximately $15 billion in total revenue over the 15-year contract term.

Helios Datacenter Capacity

Q: What is the projected power capacity of the Helios datacenter at full buildout? A: The Helios datacenter is projected to have a power capacity of 3.5 gigawatts when fully built out. Q: How much capacity will be available after the CoreWeave agreement is fulfilled? A: After fulfilling the CoreWeave agreement, the data center will have an additional 2.7 gigawatts of capacity available to sell to other clients.

Broader Industry Trends

Q: What trend does Galaxy Digital's expansion into AI infrastructure represent? A: This move highlights how digital asset firms are leveraging their capital-raising abilities and repurposing infrastructure to meet the increasing demand for AI compute power. It signifies a convergence between compute infrastructure and digital asset infrastructure. Q: What other crypto-native firms are expanding into AI infrastructure? A: CoreWeave, originally a crypto mining company, recently acquired Core Scientific to expand its data center capacity for AI and HPC workloads. Q: What was the original purpose of the Helios data center acquisition? A: The Helios data center was initially acquired for Bitcoin mining initiatives.

Crypto Market AI's Take

This development from Galaxy Digital underscores a significant trend in the digital asset space: the strategic pivot towards supporting the burgeoning AI industry. As demand for AI computing power, driven by advanced machine learning models and data processing, continues to surge, companies with robust infrastructure and access to capital are well-positioned to capitalize on this convergence. The partnership with CoreWeave, a major player in GPU cloud services, is a testament to this strategy. This move not only diversifies Galaxy Digital's revenue streams beyond traditional crypto activities but also positions them at the forefront of a technologically transformative era. For those interested in understanding how AI is reshaping the financial landscape, exploring resources on AI-driven market analysis can provide valuable insights into how these technologies are being applied to generate actionable trading strategies.

Galaxy secures .4B loan to fast-track Texas Helios AI datacenter