Galaxy Digital secures $1.4B financing to expand Helios AI data center

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Galaxy Digital Holdings (NASDAQ:GLXY [https://seekingalpha.com/symbol/GLXY]) (OTCPK:BRPHF [https://seekingalpha.com/symbol/BRPHF]) has closed [https://seekingalpha.com/pr/20202372-galaxy-closes-1_4-billion-project-financing-facility-to-accelerate-helios-ai-datacenter] a $1.4B project financing facility to further expand its Helios data center campus in West Texas, it said on Friday.

The debt facility will fully fund the initial retrofit and expansion of Helios to deliver the first phase of power for AI and high-performance computing ("HPC") operations under a long-term agreement with CoreWeave (CRWV [https://seekingalpha.com/symbol/CRWV]).

Galaxy (NASDAQ:GLXY [https://seekingalpha.com/symbol/GLXY]) has already provided the $350M equity requirement, with the remaining construction costs to be covered by the debt facility. The $1.4B financing, which was secured at 80% loan to cost, has a 36-month term and is secured by all the assets associated with the first phase of Helios's buildout.

"This financing marks a major milestone in our transformation of Helios into a next-generation AI and HPC datacenter campus," said Mike Novogratz, Founder and CEO of Galaxy. "We're on track and excited to deliver the first phase of power to CoreWeave (CRWV [https://seekingalpha.com/symbol/CRWV]) beginning in early 2026. This project is a key step in diversifying Galaxy's business model as we expand beyond crypto and into the broader AI infrastructure space."

Earlier in the month, Galaxy struck the lease deal with CoreWeave (CRWV [https://seekingalpha.com/symbol/CRWV]) for the second phase of the Helios development. CoreWeave has now committed to the full 800 megawatts of approved power capacity at Helios.

Galaxy (GLXY [https://seekingalpha.com/symbol/GLXY]) said it expects to generate average annual revenue of over $1B over the 15-year term of the agreements with CoreWeave (CRWV [https://seekingalpha.com/symbol/CRWV]), citing committed contractual terms, internal estimates for capital expenditures and the assumption of full capacity utilization of critical IT load it has agreed to provide.

BRPHF shares retreated 7.5% in late morning trading.

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