Galaxy and CoreWeave Expand Alliance with Data Center Expansion

Galaxy Digital (GLXY) announced a strategic alliance with CoreWeave (CRWV), strengthening its commitment to the rapidly growing artificial intelligence (AI) and high-performance computing (HPC)-focused data center segment.

Under the new agreement, CoreWeave will gain access to an additional 260 megawatts (MW) of mission-critical IT workload at the Galaxy Helios data center campus in West Texas, bringing the total dedicated capacity for AI and HPC operations at the site to 393 MW.

The move highlights Galaxy’s continued shift away from Bitcoin mining as the Helios campus, acquired from Argo Blockchain in 2022, becomes the foundation for the next generation of digital infrastructure. CEO Mike Novogratz emphasized the strategic importance of diversifying the company’s businesses into blockchain, cryptocurrency, and AI, highlighting the long-term potential for increased shareholder value.

Galaxy shares rose 8% in Toronto trading and are now up 60% from their April lows. CoreWeave has gained 13% and is currently trading 10% higher.

The announcement follows the March agreement to lease the first phase, covering 133 MW over 15 years. The new commitment for the second phase is consistent with the terms of the original deal and reflects the confidence of both parties in the capacity and strategic location of the facility. With infrastructure upgrades already underway, the first phase is expected to be operational by mid-2026, with the second phase coming online in 2027.

The facility has an approved capacity of 800 MW, with another 1.7 gigawatts currently being assessed, allowing Galaxy to prepare for further expansion.

CoreWeave retains exclusive rights to even greater capacity.

At the same time, Galaxy is also looking at ways to monetize its legacy Bitcoin mining infrastructure, indicating a decisive turnaround in its operations.

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Source: cryptonews.net