Digital asset investment firm Galaxy Digital (GLXY) announced Friday that it has agreed to a $460 million private investment from one of the world’s largest asset managers. The deal will add cash to the company’s growing data center business and general corporate needs.
The privately held investment will be 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 a price of $36 per share, according to a press release. This represents an 8.5% discount from Friday’s closing price.
“Strengthening our balance sheet is essential to efficiently expand Galaxy’s data center business while maintaining the financial flexibility to support future growth,” Novogratz said. ”
This significant investment in our company by one of the world’s largest and most sophisticated institutional investors supports our strategic vision and ability to build leading businesses across digital assets and data centers. ”
The transaction is expected to close on or about October 17, subject to customary conditions, including approval by the Toronto Stock Exchange.
From mining to AI
The company said the funding will help build its Helios data center campus, which will deliver 133 megawatts of critical IT load in the first half of 2026 under the first phase of the lease.
Galaxy acquired Helios from struggling mining company Argos in 2022 to operate it as a mining operation. But as Bitcoin mining became increasingly difficult due to thin profit margins, Galaxy, like many other miners, pivoted its mining operations to data centers for AI and HPC computing.
Since then, Galaxy has increased its investment in Helios, rapidly expanding and reinventing Helios 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 expand Helios. The deal follows a lease agreement with AI cloud provider CoreWeave (CRWV), which has committed to utilizing all 800 megawatts of power capacity currently approved for Helios.
Galaxy’s AI push is a welcome development in the market, as investors and analysts see the pivot as a move that could add more value to the stock. Galaxy shares rose 3% in post-market trading on news of the new deal.
Read more: Galaxy Digital’s bull case is about AI data centers, not Bitcoin mining, says research firm
