Bitcoin News Today: Galaxy Mines Data, Not Bitcoin: Texas Campus Becomes AI Powerhouse

Galaxy Digital Holdings Ltd., a leading player in the digital assets and blockchain sector, has secured a $460 million private investment to transform 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 accelerate the development of the Helios campus, a project poised to deliver 133 megawatts of IT capacity by early 2026. CEO Mike Novogratz emphasized that the investment underscores institutional confidence in Galaxy's strategic pivot from crypto infrastructure to AI-driven high-performance computing (HPC) workloads.

The deal involves the issuance of 12.77 million Class A shares at $36 per share, with proceeds allocated to corporate expansion and Helios development. Galaxy previously secured a $1.4 billion loan in August 2025 to fund 80% of the Helios project. The Helios campus, originally a Bitcoin mining operation acquired from Argo Blockchain in 2022, will now serve as a hub for CoreWeave, an AI cloud infrastructure provider, under a 15-year lease agreement. CoreWeave has committed to 800 megawatts of capacity at Helios, with Galaxy planning to lease the remaining 2.7 gigawatts to other clients. The partnership is projected to generate over $1 billion annually in revenue, totaling $15 billion over the lease term.

Texas has emerged as a critical hub for AI infrastructure due to its abundant renewable energy, business-friendly regulations, and robust power grid. The state's data center market has seen a fourfold increase in construction since 2023, driven by demand from AI and cloud computing firms. Galaxy's Helios project aligns with this trend, leveraging Texas's low-cost energy and existing fiber networks to position itself as one of North America's largest AI infrastructure projects.

The strategic shift reflects a broader industry trend, with crypto-native firms repurposing mining assets for AI. CoreWeave itself transitioned from cryptocurrency mining to AI infrastructure in 2024. Analysts highlight the financial appeal of such pivots, noting that Galaxy's AI hosting deal could generate $300 million annually-nearly 70% of its 2024 revenue. H.C. Wainwright & Co. analyst Mike Colonnese described the contract terms as "very favorable," with 90% EBITDA margins and project debt covering most retrofit costs.

Galaxy's stock reacted mixedly to the news, closing 6% lower on Friday despite the investment announcement. However, the company's Q4 2024 financial results exceeded expectations, with $698.1 million in revenue and $174.3 million in net income. Novogratz stressed that the AI pivot strengthens Galaxy's balance sheet and diversifies its revenue streams, positioning it to capitalize on the growing demand for scalable compute power.

As the global AI race intensifies, Galaxy's Helios project joins other ambitious initiatives, such as OpenAI's Stargate AI data center in Abilene, Texas. With Texas's power demand projected to double by 2031, the state's role in powering the AI revolution is set to expand. Galaxy's transformation underscores the evolving intersection of crypto infrastructure and AI, where former Bitcoin mines are becoming critical nodes in the next-generation digital economy.

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/)

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

[4] OpenAI and partners are building a massive AI data center in Texas (https://arstechnica.com/ai/2025/07/openai-and-partners-are-building-a-massive-ai-data-center-in-texas/)

[5] AI, Land, and Power: Inside Texas' Data Center Explosion (https://trerc.tamu.edu/blog/ai-land-and-power-inside-texas-data-center-explosion/)

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

[7] Galaxy Announces Commitment with CoreWeave to Host Additional AI Infrastructure (https://www.galaxy.com/newsroom/galaxy-announces-commitment-with-coreweave)

[8] Galaxy Digital's AI Pivot: A $4.5B Deal With CoreWeave (https://icoholder.com/en/news/galaxy-digitals-ai-pivot-a-4-5b-deal-with-coreweave)