Bitcoin News Today: From Bitcoin to AI: Galaxy's $460M Data Center Reinvention

Galaxy Digital, the crypto and digital assets firm founded by Mike Novogratz, has secured a $460 million private investment to accelerate the conversion of its former Bitcoin mining site in Texas into a large-scale AI data center. The funding, sourced from one of the world's "largest asset managers," will support the expansion of its Helios campus, a 1,500-acre facility in Dickens County, Texas, which is expected to deliver 133 megawatts of IT capacity by early 2026 and scale to 3.5 gigawatts at full buildout . The transaction involves the issuance of 12.77 million Class A shares at $36 per share and is slated to close by October 17, 2025, pending Toronto Stock Exchange approval .

The investment follows a $1.4 billion loan facility secured in August 2025, which funds roughly 80% of the Helios project's initial costs. Galaxy has partnered with CoreWeave, an AI cloud infrastructure provider, under a 15-year agreement to supply compute power for AI and high-performance computing (HPC) workloads. CoreWeave has committed to 800 megawatts of the campus's total capacity, with Galaxy leasing the remaining 2.7 gigawatts to other clients. The partnership is projected to generate over $1 billion in annual revenue, totaling approximately $15 billion over the contract term .

Novogratz emphasized the strategic significance of the funding, stating that institutional backing will "support our ability to build leading businesses across digital assets and data centers." The Helios project, previously a Bitcoin mining operation, is now being repositioned as one of North America's largest AI infrastructure hubs. Galaxy acquired the site in 2022 for $65 million and has since upgraded it with state-of-the-art cooling systems, distributed redundant power infrastructure, and low-latency network connectivity to meet AI and HPC demands .

The market reaction to the news has been mixed. While Galaxy's shares surged 3% in after-hours trading following the announcement, they closed down 6.7% on October 10, 2025, amid broader market volatility linked to U.S. President Donald Trump's remarks on tariffs . Analysts attribute the short-term volatility to macroeconomic uncertainties but highlight the long-term potential of Galaxy's pivot to AI infrastructure. The company's stock, which hit an all-time high above $44 earlier in the year, has faced pressure from declining Bitcoin mining profitability and regulatory scrutiny .

Industry observers note that Galaxy's transition reflects a broader trend of crypto-native firms repurposing energy and infrastructure assets for AI and HPC. Companies like CoreWeave, which recently acquired rival miner Core Scientific for $9 billion, are also expanding their data center footprints to capitalize on the AI boom . With global AI infrastructure demand projected to grow at a 35.9% CAGR through 2030, Galaxy's Helios project positions it to capture a significant share of this market .

[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 Secures $460M to Build Massive AI Hub in Texas (https://ecoinimist.com/2025/10/11/galaxy-digital-secures-460-m-ai-hub/)

[4] Galaxy Digital Lands $460M Investment as Crypto Firm Pivots to ... (https://coincentral.com/galaxy-digital-lands-460m-investment-as-crypto-firm-pivots-to-ai-data-centers/)

[6] Galaxy Digital's $1.4B Helios AI Datacenter Expansion (https://techintelpro.com/news/ai/enterprise-ai/galaxy-digitals-14b-helios-ai-datacenter-expansion)

[8] Galaxy Digital (TSE:GLXY) Shares Down 6.6% - Time to Sell? (https://www.marketbeat.com/instant-alerts/galaxy-digital-tseglxy-stock-price-down-66-heres-what-happened-2025-08-15/)