Galaxy Digital (GLXY), the Nasdaq-listed investment and crypto services firm led by Mike Novogratz, announced Friday it has secured $1.4 billion in debt financing to fund the retrofit and expansion of its Helios data center in West Texas. The financing covers 80% of construction costs and will run for 36 months.
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Galaxy has already committed $350 million in equity toward the project. The Helios site is being expanded to increase computing capacity for artificial intelligence (AI) and high-performance computing (HPC) workloads. This reflects the growing demand for these services across the tech industry.
CoreWeave Secures All Helios Power Capacity
The financing follows a lease deal with AI cloud provider CoreWeave (CRWV), which has committed to using all 800 megawatts of approved power capacity at Helios. The first phase of power delivery is expected in early 2026 under a long-term contract.
Galaxy projects that the CoreWeave agreement will deliver more than $1 billion in average annual revenue for the next 15 years. That kind of predictable cash flow could make the data center division one of the company’s most important revenue drivers.
AI Infrastructure Becomes a Growth Priority
Known for its cryptocurrency trading, asset management, and venture investing, Galaxy is now placing heavier emphasis on data center operations. The company’s shift follows a wider move by tech firms rushing to get more power and computing resources as the race to build AI intensifies.
Other firms are making similar moves.TeraWulf (WULF), once a bitcoin miner, jumped more than 50% this week after signing a 10-year AI hosting deal worth $3.7 billion with Fluidstack and Google (GOOGL) and taking an 8% stake in the company.
Analysts See Data Center Potential Driving Galaxy Value
Jefferies (JEF) recently estimated that two-thirds of Galaxy’s valuation could eventually come from its data center business. If the Helios-CoreWeave partnership performs as projected, it could accelerate that shift, making data infrastructure a central pillar of Galaxy’s strategy.
While Galaxy shares slipped 2.2% in early trading Friday amid a broader market pullback, the scale of the CoreWeave deal and the $1.4 billion financing signal the firm’s confidence in AI infrastructure as a long-term growth engine.
What This Could Mean for Galaxy Stock
The $1.4 billion Helios expansion positions Galaxy to diversify beyond its core crypto businesses and tap into one of the fastest-growing segments in tech. A 15-year deal with guaranteed revenue from CoreWeave offers investors rare visibility into long-term cash flows, which could help stabilize Galaxy’s earnings in a volatile crypto market.
If execution stays on track, analysts may begin valuing Galaxy more like an AI infrastructure provider than a pure-play digital asset firm. This could support a higher valuation multiple, especially if the data center division delivers the projected $1 billion in annual revenue.
However, the stock’s reaction will depend on construction timelines, cost control, and the broader AI demand cycle. Delays or a slowdown in AI adoption could temper investor enthusiasm. For now, the Helios-CoreWeave deal gives Galaxy a compelling growth story that could shift market perception in its favor.
Is Galaxy Digital Stock a Good Buy?
Wall Street analysts remain bullish on Galaxy Digital’s prospects, with 11 of 12 issuing a Buy rating over the past three months and only one recommending Hold. None currently rate the stock a Sell.
The average 12-month GLXY price target is C$50.32, which suggests a potential 28.99% upside from the recent price.
