Galaxy secures $1.4 billion for AI datacenter expansion in Texas

NEW YORK - Galaxy Digital Inc. (NASDAQ:GLXY) (TSX:GLXY), which has seen its stock surge over 160% in the past year and now commands a market capitalization of $10.7 billion, has closed a $1.4 billion project financing facility to fund the development of its Helios datacenter campus in West Texas, according to a press release statement issued Friday. InvestingPro analysis suggests the stock is currently trading below its Fair Value, making it an interesting watch for value investors.

The debt facility, secured at 80% loan to cost with a 36-month term, will support the initial retrofit and expansion of the Helios campus to deliver power for artificial intelligence and high-performance computing operations under a long-term agreement with CoreWeave Inc.

Galaxy has provided the $350 million equity requirement for the project, with the remaining construction costs covered by the debt facility.

The company also announced that CoreWeave has executed a lease agreement for the second phase of the Helios datacenter development, giving CoreWeave access to an additional 260 MW of critical IT load. CoreWeave recently exercised its final option to access an additional 133 MW, bringing its total commitment to the full 800 MW of approved power capacity at the campus.

Galaxy expects to generate average annual revenue of more than $1 billion over the 15-year term of the agreements with CoreWeave, based on contractual terms and internal estimates. The company reported $3.2 billion in revenue over the last twelve months, though InvestingPro data shows analysts expect some near-term earnings challenges. Three analysts have recently revised their earnings estimates upward, suggesting improving sentiment around the company’s prospects.

The first phase of power delivery to CoreWeave is scheduled to begin in early 2026. Galaxy reports having 2.7 GW of additional power capacity under various stages of load study, with the potential to support up to 3.5 GW of power at full buildout.

The financing facility is secured by all assets associated with the first phase of the Helios buildout, with key terms disclosed in a concurrent SEC filing. For investors seeking deeper insights, InvestingPro offers 15+ additional exclusive tips and a comprehensive Pro Research Report on Galaxy Digital, including detailed financial analysis and peer comparisons that can help inform investment decisions in this volatile tech infrastructure sector.

In other recent news, Galaxy Digital Inc. reported its financial performance for the second quarter of 2025, revealing a strong adjusted gross profit of $299 million. Despite these results, Rosenblatt has lowered its price target for Galaxy Digital to $35, down from $36, while maintaining a Buy rating. The firm cited weaker-than-expected performance in the quarter but noted "clear progress and encouraging trends" for Galaxy Digital’s future.

Additionally, Galaxy Digital has expanded its partnership with Soluna Holdings, Inc. for a 48 MW deployment at Soluna’s Project Kati 1 in Texas, which will reach full capacity by the first quarter of 2026. The company also announced a strategic partnership with Mill City Ventures III, Ltd. to manage a $450 million SUI treasury, marking a significant collaboration in public markets.

In leadership changes, Galaxy Digital appointed Matt Friedrich as Chief Legal Officer, effective September 2025, to oversee global legal and compliance matters. These recent developments highlight Galaxy Digital’s ongoing strategic expansions and leadership adjustments amidst evolving market conditions.

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