What's Happening?
Galaxy Digital, led by Mike Novogratz, has secured a $1.4 billion loan to accelerate the development of its Helios artificial intelligence datacenter campus in Texas. 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 it will mature on August 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 CoreWeave, a GPU cloud provider, starting early 2026.
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Why It's Important?
This development underscores the growing convergence between digital asset firms and AI infrastructure, as companies like Galaxy Digital leverage their capital-raising capabilities to tap into the increasing demand for AI compute power. The Helios datacenter is expected to generate over $1 billion in annual revenue from its 15-year deal with CoreWeave, potentially earning $15 billion in total revenue. This move reflects a broader trend among crypto-native firms seeking new growth avenues as institutional capital shifts towards AI. The expansion of the Helios datacenter will also provide additional power capacity to other clients, further enhancing its revenue potential.
What's Next?
Galaxy Digital plans to expand the Helios datacenter to a power capacity of 3.5 gigawatts at full buildout. Beyond its deal with CoreWeave, the datacenter will have an extra 2.7 gigawatts available for other clients, potentially increasing its revenue streams. As the project progresses, Galaxy Digital may continue to explore partnerships and investments to further integrate AI and high-performance computing capabilities into its operations. The success of this initiative could influence other digital asset firms to pursue similar strategies, fostering innovation and growth in the AI sector.
Beyond the Headlines
The Helios datacenter was originally acquired for Bitcoin mining initiatives, highlighting the shift in focus from cryptocurrency to AI and high-performance computing. This transition reflects the evolving landscape of digital asset firms as they adapt to changing market demands and seek sustainable growth opportunities. The acquisition of Core Scientific by CoreWeave further illustrates the strategic moves within the industry to expand data center capacity and support AI workloads, signaling a potential shift in priorities for companies traditionally focused on crypto mining.
