Digital giant Galaxy obtains $1.4 billion funding for its AI-focused project, Helios Hub.
Galaxy Digital, a leading digital asset management firm, is diversifying its data center operations from crypto mining to artificial intelligence (AI) compute infrastructure. This strategic shift is made possible by a $1.4 billion financing package, which includes $350 million in equity and $1.05 billion in debt.
The financing, structured to provide financial stability over a 36-month period, will be used to retrofit and expand the Helios campus in West Texas. The campus, currently leased to CoreWeave, a leading AI cloud provider, will be transformed into a large-scale AI and high-performance computing (HPC) hub.
CoreWeave has initially committed to leasing 800 megawatts (MW) of power, with options to expand up to 3.5 gigawatts (GW) at full buildout. This lease generates inflation-protected revenue for Galaxy Digital, with projected average annual revenues of over $1 billion, potentially totaling $15 billion over the lease lifespan.
The repurposed facility will leverage Texas's deregulated energy market and abundant renewable power sources, supplemented by advanced liquid cooling technologies. This setup is designed to optimize for scalable, energy-efficient, and sustainable AI/HPC operations.
This pivot away from purely cryptocurrency-focused infrastructure to high-demand AI compute workloads aims to mitigate volatility and position Galaxy Digital at the forefront of the rapidly growing, estimated $1.8 trillion AI infrastructure market.
Implications for Bitcoin Miners
The Helios data center transformation marks a strategic shift away from Bitcoin mining, which is inherently volatile and energy-intensive, towards a more diversified business model centered on AI infrastructure. This transition also signals a broader industry trend where former crypto mining assets are being repurposed for AI and HPC workloads due to the scale and energy demands shared by both sectors.
While Galaxy’s move reduces their direct exposure to mining, it retains their asset base in West Texas’s energy-rich environment, where AI workloads can provide more stable and predictable long-term revenue streams. This suggests that Bitcoin miners may find better returns in AI than crypto.
A Giant Leap for AI Computing
The transformation of Helios aims to create one of the largest and most advanced AI datacenter campuses in the world. The company's CEO, Mike Novogratz, stated that they are executing with focus and discipline to transform Helios into an AI hub.
The Helios facility, located in Texas, benefits from cheap energy and a favorable regulatory environment. This strategic move positions Galaxy Digital at the forefront of the AI revolution, capitalizing on the convergence of AI demand and crypto infrastructure expertise, while reducing reliance on Bitcoin mining.
[1] Galaxy Digital Press Release, [Link] [2] CoreWeave Press Release, [Link] [3] Coindesk Article, [Link] [4] The Block Article, [Link] [5] CoinTelegraph Article, [Link]
- With the repurposing of the Helios data center, Galaxy Digital is moving away from Bitcoin mining towards a more diversified business model that includes AI infrastructure, signaling a broader industry trend.
- The transformation of the Helios facility aims to create one of the largest and most advanced AI datacenter campuses globally, benefiting from cheap energy and a favorable regulatory environment.
- By leveraging Texas's deregulated energy market and abundant renewable power sources, Galaxy Digital is aiming to optimize for scalable, energy-efficient, and sustainable AI/HPC operations.
- The pivot from crypto mining to AI infrastructure mitigates volatility and positions Galaxy Digital at the forefront of the rapidly growing AI infrastructure market, estimated to be worth $1.8 trillion.
- By retaining their asset base in West Texas's energy-rich environment, Galaxy Digital may have opened up opportunities for Bitcoin miners to find better returns in AI workloads, providing more stable and predictable long-term revenue streams.
