Bitcoin News Today: Galaxy Ditches Bitcoin for AI Stability, Lands $460M Investment

Galaxy Digital (GLXY) announced a $460 million private investment from an unnamed major asset manager to support its data center expansion and corporate needs, marking a significant milestone in its transition from Bitcoin mining to artificial intelligence (AI) and high-performance computing (HPC) infrastructure. The investment includes 9,027,778 new Class A shares and 3,750,000 shares from executives, including founder and CEO Mike Novogratz, priced at $36 per share, an 8.5% discount to Friday's closing price Galaxy Gets $460M Investment by Large Asset Manager for Its HPC Push^[1]. Proceeds will fund the development of the Helios data center, which is projected to deliver 133 megawatts of IT load by mid-2026 under Phase One of its lease agreement Galaxy Gets $460M Investment by 'Large Asset Manager' for Its …^[2]. The transaction is expected to close on or about October 17, subject to Toronto Stock Exchange approval Galaxy Digital’s Future Lies in AI Data Centers, Analysts Report^[3].

The pivot to AI and HPC reflects Galaxy's strategic realignment. In 2022, Galaxy acquired Helios from struggling miner Argos, initially as a Bitcoin mining operation. However, as mining margins tightened, the firm shifted focus to AI infrastructure, securing a 15-year lease with CoreWeave, a leading AI cloud provider. CoreWeave has committed to 800 megawatts of approved power capacity at Helios, with Galaxy anticipating $4.5 billion in total revenue over the lease term . This move aligns with broader industry trends, as analysts highlight the superior stability of AI data center cash flows compared to Bitcoin mining's cyclical revenue model, which faces 50% declines every four years due to halving events Galaxy Digital’s AI Data Center Strategy Outpaces Bitcoin Mining^[4].

Galaxy's financial position further strengthens its AI ambitions. The firm holds $1.8 billion in net cash and investments, providing flexibility for growth Galaxy Digital’s AI Data Center Strategy Outpaces Bitcoin Mining^[4]. Rittenhouse Research estimates that the Helios data center could generate $1.7 billion in EBITDA, potentially increasing Galaxy's equity value to $32 billion Galaxy Digital pivots from crypto to AI - signs 200MW …^[5]. The firm has also exited all Bitcoin mining operations, signaling a full commitment to AI infrastructure, a factor analysts say enhances its appeal to hyperscaler tenants Galaxy Digital pivots from crypto to AI - signs 200MW …^[5].

The investment has been well-received by the market, with Galaxy shares rising 3% in post-market trading following the announcement Galaxy Gets $460M Investment by Large Asset Manager for Its HPC Push^[1]. CEO Novogratz emphasized that the deal would support Galaxy's strategic vision and financial flexibility, enabling the firm to scale its data center business and capitalize on the AI infrastructure boom Galaxy Gets $460M Investment by 'Large Asset Manager' for Its …^[2].