Bitcoin News Today: Galaxy's $460M Shift: Crypto's Decline Fuels AI Infrastructure Boom

Galaxy Digital, the crypto infrastructure firm led by Mike Novogratz, has raised $460 million in fresh capital to accelerate the transformation of its former Bitcoin mining site in Texas into a large-scale AI data center. The investment, secured through the issuance of 12.77 million Class A shares at $36 per share, will fund general corporate operations and the expansion of its Helios campus, which is projected to deliver 133 megawatts of IT capacity by early 2026. The transaction, pending Toronto Stock Exchange approval, is set to close by October 17, 2025.

The latest funding follows a $1.4 billion project financing facility Galaxy secured in August to cover 80% of the Helios buildout. Under a 15-year agreement with CoreWeave, an AI cloud infrastructure provider, Galaxy will supply compute power for AI and high-performance computing (HPC) workloads starting in 2026, generating over $1 billion in annual revenue for the partnership. At full buildout, the Helios campus will boast a 3.5-gigawatt capacity, making it one of North America's largest AI infrastructure projects. CoreWeave has already committed to 800 megawatts of power, while Galaxy plans to lease the remaining 2.7 gigawatts to additional clients.

Novogratz emphasized the strategic significance of the investment, calling it a "major milestone" in Galaxy's pivot from crypto to AI infrastructure. "Having one of the world's largest and most sophisticated institutional investors make such a significant investment in our company will support our strategic vision and our ability to build leading businesses across digital assets and data centers," he stated. The shift aligns with broader trends in the crypto industry, where firms are increasingly repurposing mining infrastructure for AI due to declining Bitcoin profitability post-halving and surging demand for compute power.

The move mirrors similar transitions by competitors. Core Scientific, for instance, emerged from bankruptcy by pivoting to AI colocation services, securing a $3.5 billion, 12-year deal with CoreWeave. Other firms, including Hut 8 and Riot Platforms, are also leveraging their energy and cooling expertise to enter the AI market. Analysts note that AI data centers can generate up to 25 times more revenue per kilowatt-hour than Bitcoin mining, despite higher upfront costs.

However, challenges remain. Retrofitting mining facilities for AI requires significant capital for GPU procurement, advanced cooling, and networking upgrades. Additionally, competition for energy resources between mining and AI is intensifying, with states like Texas becoming battlegrounds for power allocation. Galaxy's success will depend on its ability to balance these demands while maintaining financial flexibility, a goal underscored by its recent equity raise.

The market reacted mixedly to the news. Galaxy's shares fell 6% on Friday but surged in after-hours trading following the announcement. The stock's volatility reflects broader uncertainties in the crypto and tech sectors, including macroeconomic headwinds and geopolitical tensions.

As the AI infrastructure boom accelerates, Galaxy's transformation highlights the evolving role of former mining firms in the digital economy. With its Helios campus poised to become a key player in the AI ecosystem, the company's pivot may set a precedent for others seeking to capitalize on the convergence of energy, compute, and institutional capital.

Source: [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/)

[5] Galaxy Closes $1.4B Project Financing to Accelerate Helios AI ... (https://www.galaxy.com/newsroom/galaxy-closes-helios-project-financing)

[7] Bitcoin Miners & AI: A 2025 Update | Codeum Smart Contract Audit (https://codeum.org/news/bitcoin-miners-ai-2025)

[8] 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)

[9] Bitcoin Mining in 2025–2026: Beyond the ASIC Arms Race - Crypto ... (https://cryptonews.com/exclusives/bitcoin-mining-in-2025-2026-beyond-the-asic-arms-race/)

[10] GPU Gold Rush: Why Bitcoin Miners Are Powering AI's Expansion (https://www.coindesk.com/markets/2025/09/14/ai-mining-news-gpu-gold-rush-why-bitcoin-miners-are-powering-ai-s-expansion)