Galaxy Digital Strengthens Partnership with CoreWeave, Shares Rise

Key Highlights

Galaxy and CoreWeave have expanded their collaboration, as CoreWeave commits to an extra 260 MW of vital IT load at Galaxy’s Helios data center, raising total capacity to 393 MW for AI and high-performance computing operations.
This strategy accelerates Galaxy’s transformation from primarily bitcoin mining to a digital infrastructure that supports AI-driven data center initiatives and promotes long-term growth via diversification.

Announcement Details

Galaxy Digital (GLXY) reported it has solidified its strategic alliance with CoreWeave (CRWV), strengthening its foothold in the burgeoning AI and HPC data center sector. Under a new agreement, CoreWeave will access an additional 260 megawatts (MW) of critical IT load at Galaxy’s Helios data center campus in West Texas, increasing the total committed capacity for AI and HPC operations at the site to 393 MW.

The integration of this capacity signifies Galaxy’s ongoing shift away from bitcoin mining, with its Helios campus, acquired from Argo Blockchain in 2022, evolving into a fundamental component of next-gen digital infrastructure. CEO Mike Novogratz underscored the importance of diversifying the company’s operations across blockchain, crypto, and AI to maximize shareholder value over the long run.

Galaxy shares experienced a rise of up to 8% in Toronto trading, now 60% above their April lows. Similarly, CoreWeave saw gains of up to 13% and was last trading 10% higher.

This announcement builds on the previous Phase I lease agreement established in March, which secured 133 MW over 15 years. The new Phase II commitment reflects similar terms and illustrates both parties’ confidence in the infrastructure’s capability and strategic positioning.

Future Prospects

The Helios site is poised for more expansion, benefitting from 800 MW of already approved capacity, with an additional 1.7 gigawatts currently under evaluation.

In addition to these developments, Galaxy is exploring avenues to monetize its existing bitcoin mining infrastructure, indicating a significant shift in operational priorities.