Galaxy, the Nasdaq-listed digital asset investment firm, said on Friday it has secured $1.4 billion in funding to expand its Helios data center in West Texas, part of the firm’s push to boost computing capacity for artificial intelligence (AI) and high-performance computing (HPC).
The debt facility, which covers 80% of construction costs, runs for 36 months and will fund the retrofit and expansion of the site, the firm said in a press release. Galaxy has already contributed $350 million in equity.
Shares fell 2.2% in early trading, along with the broader market pullback.
The deal follows a lease agreement with AI cloud provider CoreWeave (CRWV), which has now committed to all 800 megawatts of approved power capacity at Helios. The first phase is scheduled to deliver power to CoreWeave’s operations in early 2026 under a long-term contract, founder and CEO Mike Novogratz said.
The firm projected the CoreWeave deal could bring in more than $1 billion in average annual revenue over 15 years.
Galaxy, known primarily for its crypto trading, asset management and venture businesses, is expanding its data center operations as U.S. tech firms scramble for power and compute resources amid increasing AI competition. TeraWulf (WULF), a former bitcoin
miner that pivoted to HPC, soared over 50% on Thursday on signing a 10-year, $3.7 billion AI hosting contract with Fluidstack and tech giant Google, taking an 8% stake in the firm.
Jefferies said in a July report that two thirds of Galaxy’s value could stem from its data center business.
Read more: TeraWulf Jumps 22% on $3.7B AI Hosting Deal, With Google Taking 8% Stake