Galaxy Digital’s $1.4B AI Bet Slumps as $280M Volume Ranks 372nd

Galaxy Digital (GLXY) fell 8.68% on August 15, trading at a volume of $0.28 billion, ranking 372nd in market activity. The stock’s decline followed the announcement of a $1.4 billion project financing facility to accelerate development of its Helios datacenter campus in West Texas. The facility, secured at 80% loan-to-cost over 36 months, will fund the initial retrofit and expansion of the site to support AI and high-performance computing (HPC) operations under a long-term agreement with CoreWeave. Galaxy contributed $350 million in equity, with the remaining costs covered by the debt facility.

The Helios campus has seen significant progress, including a second-phase lease agreement with CoreWeave, granting access to an additional 260 MW of critical IT load. CoreWeave recently exercised a final option to secure 133 MW, committing to the full 800 MW of approved power capacity. Galaxy projects average annual revenue exceeding $1 billion over a 15-year term, assuming full utilization of contracted power. The company aims to expand the campus to 3.5 GW of total capacity, with 2.7 GW currently under load study. CEO Mike Novogratz emphasized the strategic shift to AI infrastructure as a key diversification effort beyond digital assets.

The financing and operational agreements highlight Galaxy’s focus on transforming Helios into a major AI datacenter hub. However, the stock’s sharp decline suggests market skepticism about execution risks, including construction timelines, power demand, and long-term profitability. Forward-looking statements in the company’s filings note uncertainties such as regulatory changes, technological challenges, and market volatility, which could impact revenue projections.

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