Digital asset investment firm Galaxy Digital (GLXY) announced Friday that it has accepted a $460 million private investment from one of the world’s largest asset managers, a deal that would allow it to add liquidity for its growing data center business and general corporate purposes.
The investment, from the undisclosed company, is split between 9,027,778 new Class A shares issued by Galaxy and 3,750,000 shares sold by certain executives, including founder and CEO Mike Novogratz, at $36 per share, according to the press release. This represents an 8.5% discount to Friday’s closing price.
“Strengthening our balance sheet is critical to effectively growing Galaxy’s data center business while maintaining the financial flexibility to support future growth,” Novogratz said. “
Having one of the world’s largest and most sophisticated institutional investors make such a significant investment in our company will support our strategic vision and ability to build leading digital asset and data center businesses.
The transaction is expected to close on or about October 17, subject to customary conditions, including approval from the Toronto Stock Exchange.
From mining to AI
The company said the funds will help build its Helios data center campus, which is expected to provide 133 megawatts of critical IT load in the first half of 2026 under its phase one lease.
Galaxy purchased Helios from struggling miner Argos in 2022 to operate as a mining operation. However, as bitcoin mining became increasingly difficult with low margins, Galaxy, like many other miners, shifted its mining operations to a data center for AI and HPC computing.
Since then, Galaxy has increasingly invested in Helios to rapidly grow and reinvent it as an AI and HPC hosting data center.
The new deal comes after Galaxy announced this summer that it had secured $1.4 billion in funding to develop Helios. This agreement follows a leasing agreement with AI cloud provider CoreWeave (CRWV), which has now committed to providing the 800 megawatts of approved power capacity to Helios.
This AI push by Galaxy has been a welcome development in the market as investors and analysts view the pivot as a move that could add more value to the stock. Shares of Galaxy jumped 3% in aftermarket trading following the news of the new deal.
Read more: Bull deal for Galaxy Digital is about AI data centers, not Bitcoin mining, research firm says
