Digital asset investment firm Galaxy Digital (GLXY) said Friday it has agreed to a $460 million private investment from one of the world’s largest asset managers, a deal that would add cash for its growing data center business and overall corporate needs.
The investment, from the undisclosed company, is 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 $36 per share, according to the news release. That’s an 8.5% discount to Friday’s closing price.
“Strengthening our balance sheet is essential to scaling Galaxy’s data center business efficiently while maintaining financial flexibility to support future growth,” Novogratz said. “
“Having one of the world’s largest and most sophisticated institutional investors make such a significant investment in our company will support our strategic vision and ability to build leading digital asset and data center businesses.”
The transaction is expected to close on or about October 17, subject to customary conditions, including approval by the Toronto Stock Exchange.
AI Mining
The firm said the funds will help build its Helios data center campus, which is scheduled to deliver 133 megawatts of critical IT load in the first half of 2026 under its Phase One lease.
Galaxy bought Helios from struggling miner Argos in 2022 to operate as a mining operation. However, as bitcoin mining became increasingly difficult and with slim margins, Galaxy, like many other miners, pivoted its mining operations toward a data center for AI and HPC computing.
Since then, Galaxy has increasingly invested in Helios to rapidly expand and reinvent it 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 financing to expand Helios. That deal followed a leasing agreement with AI cloud provider CoreWeave (CRWV), which has now committed to using the 800 megawatts of approved power capacity on Helios.
This AI push by Galaxy has been 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 following news of the new deal.
Read more: Bull’s pitch for Galaxy Digital is AI data centers, not Bitcoin mining, says research firm
