Mike Novogratz's Galaxy Digital successfully secured a $1.4 billion loan to accelerate the construction of its Helios AI data center in Texas.
The company announced that the loan will cover 80% of the construction costs for the first phase of the project, with Galaxy Digital raising $350 million. According to filings with the U.S. Securities and Exchange Commission, the loan is secured by all assets of Galaxy Helios I and is due on August 15, 2028.
The funds will be used to expand the Helios AI data center to support the long-term cooperation needs with GPU cloud provider CoreWeave, which will kick off in early 2026.
Galaxy Digital expects to achieve $1 billion in annual revenue from the CoreWeave partnership
Galaxy also announced that CoreWeave has committed to a total approved capacity of 800 megawatts for the Helios campus, which will be used for its AI and high-performance computing operations.
The company expects that a 15-year contract with CoreWeave will generate more than $1 billion in annual revenue, with total revenue projected to reach $15 billion after the contract is completed.
Once completed, the Helios data center is expected to have a total power capacity of 3.5 gigawatts, while the remaining capacity of 2.7 gigawatts after the CoreWeave contract will be available for other clients.
Cryptocurrency companies enter the AI field
Galaxy Digital's foray into AI is to leverage the influx of institutional capital into AI and explore new growth channels. CoreWeave, originally a cryptocurrency mining company, expanded its data center capacity through an all-stock acquisition of Core Scientific for $9 billion.
Similarly, the Helios data center was initially used for Bitcoin mining, as Mike Novogratz previously stated that its acquisition was aimed at increasing exposure to Bitcoin mining.