Bitcoin News Today: Galaxy Digital's $460M AI Pivot as Crypto Profits Fade

Galaxy Digital Holdings Ltd. has secured a $460 million private investment to transform its former Bitcoin mining site in Texas into a large-scale AI data center, marking a pivotal shift in the company's strategy as it pivots away from cryptocurrency mining toward high-performance computing (HPC) and artificial intelligence infrastructure. The funding, sourced from one of the world's largest asset managers, involves the issuance of 12.77 million Class A shares at $36 per share, with proceeds earmarked for the expansion of its Helios campus in Dickens County, Texas. The transaction, expected to close by October 17, 2025, follows a $1.4 billion loan facility secured in August to fund 80% of the Helios buildout.

The Helios campus, initially developed as one of North America's largest Bitcoin mining operations, is being repositioned to deliver 3.5 gigawatts of total capacity by 2026, making it one of the continent's largest AI infrastructure projects. Under a 15-year agreement with AI cloud provider CoreWeave, Galaxy will supply compute power for AI and HPC workloads starting in 2026, with CoreWeave committing to 800 megawatts of capacity. The partnership is projected to generate over $1 billion in annual revenue, totaling $15 billion over the contract's duration. Galaxy plans to lease the remaining 2.7 gigawatts to additional clients, including fintech and research firms.

The investment underscores a broader industry trend of crypto-native firms redirecting capital toward AI infrastructure amid declining Bitcoin mining profitability. Galaxy's CEO, Mike Novogratz, emphasized that the funding from a "sophisticated institutional investor" will strengthen the company's balance sheet and enable it to scale its data center operations while maintaining flexibility for future growth. The move aligns with similar transitions by firms such as CoreWeave, which recently acquired rival miner Core Scientific in a $9 billion all-stock deal to expand its AI and HPC capabilities.

Market reaction to the announcement was mixed. While Galaxy's shares surged to an all-time high above $44 initially, they closed the week down 6% as broader tech and crypto markets retreated. Analysts note that the pivot to AI infrastructure positions Galaxy to capitalize on the soaring demand for generative AI models, which require vast computational resources. The company's Helios campus, already equipped with 800 megawatts of approved power, is set to become a critical node in the AI infrastructure boom, bridging the digital asset economy with next-generation computing needs.

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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 investment to expand Texas AI data ... (https://tradersunion.com/news/financial-news/show/645869-galaxy-digital-secures-460m)

[3] 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/)

[5] Galaxy Announces Commitment with CoreWeave to ... (https://www.galaxy.com/newsroom/galaxy-announces-commitment-with-coreweave)

[6] Galaxy Digital pivots from crypto to AI - signs 200MW ... (https://www.datacenterdynamics.com/en/news/galaxy-digital-pivots-from-crypto-to-ai-signs-200mw-deal-with-coreweave/)

[7] Galaxy Digital raises $460M to transform Texas Bitcoin mine into ... (https://blockchair.com/news/galaxy-digital-460m-ai-data-center-texas--61c5f6db60038db4)

[8] CoreWeave's revenue set to soar as dem... (https://visiblealpha.com/data-snapshot/coreweaves-revenue-set-to-soar-as-demand-for-ai-infrastructure-booms/)