Bitcoin News Today: Bitcoin Mining's Decline Drives Galaxy's $460M AI Pivot

Mike Novogratz's Galaxy Digital has secured a $460 million private investment to transform its former Bitcoin mining site in Texas into the Helios AI data center. The funding, sourced from one of the world's "largest asset managers," involves the purchase of 12.77 million Class A shares at $36 per share. Proceeds will accelerate the Helios campus's expansion, which is projected to deliver 133 megawatts (MW) of IT capacity by early 2026 and scale to 3.5 gigawatts (GW) at full buildout. The transaction, expected to close by October 17, 2025, pending Toronto Stock Exchange approval, underscores a strategic pivot from cryptocurrency mining to AI infrastructure.

Galaxy's investment follows an August 2024 $1.4 billion loan facility to fund 80% of the Helios project. The company has already secured a 15-year contract with CoreWeave, an AI cloud infrastructure provider, to supply compute power for AI and high-performance computing (HPC) workloads starting in 2026. Under the partnership, CoreWeave has committed to 800 MW of capacity, with Galaxy leasing the remaining 2.7 GW to additional clients. The arrangement is expected to generate over $1 billion in annual revenue for Galaxy, totaling $15 billion over the contract term.

The Helios data center's full 3.5 GW capacity would position it among North America's largest AI infrastructure projects. Galaxy plans to repurpose existing mining infrastructure while investing in electrical and cooling upgrades to meet AI performance standards. This aligns with broader industry trends as crypto firms pivot toward AI amid record Bitcoin hashrate levels, which reduce mining profitability. For example, CoreWeave itself recently acquired Core Scientific in a $9 billion all-stock deal to expand its AI data center footprint.

The move reflects growing institutional confidence in digital infrastructure. Galaxy's CEO, Mike Novogratz, emphasized that the investment will bolster the company's ability to "build leading businesses across digital assets and data centers". The stock closed down 6% on Friday, but analysts note that the firm's strategic realignment could attract further institutional capital as AI demand surges.

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[1] Galaxy Digital Raises $460M to Build Texas AI Data Center (https://cointelegraph.com/news/galaxy-digital-460m-ai-data-center-texas)

[2] Galaxy Digital Could Use $460M to Convert Former Bitcoin Mining ... (https://en.coinotag.com/galaxy-digital-could-use-460m-to-convert-former-bitcoin-mining-site-in-texas-into-ai-data-center/)

[3] Galaxy Digital raises $460M to transform Texas Bitcoin mine into ... (https://www.tradingview.com/news/cointelegraph:6a0ef3094094b:0-galaxy-digital-raises-460m-to-transform-texas-bitcoin-mine-into-ai-data-center/)

[4] Galaxy Digital Secures $460M For Texas AI Data Center (https://coinlineup.com/galaxy-digital-460m-investment-ai-center/)

[5] Galaxy Digital Secures $460 Million Investment to Transform ... (https://www.mexc.com/news/galaxy-digital-secures-460-million-investment-to-transform-former-bitcoin-mine-into-ai-data-hub/126488)

[6] CoreWeave Reports Strong Second Quarter 2025 Results (https://investors.coreweave.com/news/news-details/2025/CoreWeave-Reports-Strong-Second-Quarter-2025-Results/)

[7] CoreWeave signs $14 billion AI infrastructure deal with Meta (https://www.reuters.com/technology/coreweave-signs-14-billion-ai-deal-with-meta-bloomberg-news-reports-2025-09-30/)

[8] CoreWeave Q2 2025 revenue surges 207% to $1.21 bn on AI cloud ... (https://infotechlead.com/networking/coreweave-q2-2025-revenue-surges-207-to-1-21-bn-on-ai-cloud-demand-and-major-contracts-90696)

[9] Cryptocurrency Mining Industry Shifts to AI - Miners Sign Multi ... (https://truststrategy.com/new/cryptocurrency-mining-industry-shifts-to-ai-%E2%80%94-miners-sign-multi-billion-dollar-compute-hosting-contracts)

[10] Bitcoin Miners Are Transforming into AI Data Centers ... (https://www.datacenters.com/news/bitcoin-miners-pivot-to-ai-data-centers-a-strategic-shift-in-2025)

[11] CoreWeave Strikes $14.2 Billion Deal With Meta To ... (https://www.forbes.com/sites/kirkogunrinde/2025/09/30/coreweave-strikes-142-billion-deal-with-meta-to-boost-ai-capability/)

[12] CoreWeave signs $14.2 billion Meta deal to supply AI compute (https://www.rcrwireless.com/20251001/ai-infrastructure/coreweave-meta-ai/)