$460 Million Investment from Galaxy Digital

Galaxy Digital announced that it has received a $460 million private investment from a globally recognized large asset manager. This new funding aims to support the company's data center business and overall financial needs.

Following the announcement, Galaxy shares gained 3% in after-market trading. The funds will be directed towards the development of the Helios data center campus, which is expected to provide 133 megawatts of critical information technology load by mid-2026.

In a statement made by Galaxy Digital (GLXY), it was noted that the investment from a secret firm will be realized through the issuance of 9,027,778 new Class A shares and the sale of 3,750,000 shares by some senior executives, particularly founder and CEO Mike Novogratz, at a price of $36. This constitutes a 8.5% discount compared to Friday’s closing price.

Novogratz stated, "Strengthening our balance sheet is crucial for efficiently scaling Galaxy's data center business as well as providing financial flexibility to support future growth. The significant investment from one of the world’s largest and most sophisticated institutional investors will support our strategic vision and enhance our ability to establish leading businesses in digital assets and data centers."

The transaction is subject to customary conditions such as approval from the Toronto Stock Exchange, and it is planned to close around October 17.

Helios was acquired from the struggling miner Argos in 2022 and was initially set up as a mining operation. However, as the profitability of Bitcoin mining declined, Galaxy and many other miners shifted towards data centers and artificial intelligence (AI) computing.

Recently, Helios has focused on rapidly expanding and transforming this center by increasing its investments. This summer, Galaxy announced that it provided $1.4 billion in financing for Helios. At the same time, a lease agreement with an artificial intelligence cloud provider named CoreWeave (CRWV) committed the entirety of the approved 800 megawatts power capacity at Helios. Galaxy’s orientation towards artificial intelligence has been positively received by investors and analysts, with expectations that this transformation will add more value to the stock price. Following the new agreement news, Galaxy shares rose 3% in after-market trading.