Galaxy Digital Secures $1.4 Billion Financing for Helios AI Datacenter Expansion
Galaxy Digital Secures $1.4 Billion Financing for Helios AI Datacenter Expansion
In a significant leap towards enhancing its operational capabilities, Galaxy Digital Inc. (NASDAQ: GLXY) has successfully secured a substantial $1.4 billion project financing facility to expedite its development of the Helios AI datacenter campus in West Texas. This strategic move promises to pave the way for a cutting-edge infrastructure geared towards artificial intelligence (AI) and high-performance computing (HPC).
The Debt Facility, as the financing is termed, will completely fund the initial retrofit and expansion of the Helios site, enabling it to deliver essential power for AI operations under a long-term agreement with CoreWeave Inc.. Mike Novogratz, the Founder and CEO of Galaxy, emphasized the transformative potential of this project by stating, "This financing marks a major milestone in our transformation of Helios into a next-generation AI and HPC datacenter campus."
Funding Structure and Goals
The financing arrangement includes a $350 million equity requirement provided by Galaxy, with the remaining construction expenses being covered by the Debt Facility. This facility came at an impressive 80% loan to cost ratio and is secured by assets linked to Helios's initial phase of development, which will last for a term of 36 months. Alongside these developments, assets and key terms have been transparently disclosed in a concurrent SEC filing.
CoreWeave Partnership
In conjunction with this financing, Galaxy has also confirmed the execution of a pivotal lease agreement with CoreWeave for the second phase of the Helios datacenter development. This leasing arrangement grants CoreWeave access to an additional 260 megawatts (MW) of significant IT load, closely resembling terms laid out in the first-phase lease signed earlier this year. CoreWeave has further opted to harness an extra 133 MW of capacity, underscoring their commitment to fully utilize the 800 MW power capacity at Helios. Galaxy anticipates an average annual revenue exceeding $1 billion from the agreements with CoreWeave over a 15-year term.
Vision for Helios
As Galaxy advances its long-term vision, it strives to establish Helios as one of the largest datacenter campuses focused on AI globally. The company is currently evaluating 2.7 gigawatts (GW) of additional power capacity across various stages of load studies, with the potential to support up to 3.5 GW at full capacity.
"Our focused execution and discipline are driving the transformation of Helios into one of the largest and most advanced AI datacenter campuses worldwide," Novogratz stated. This ambitious endeavor illustrates Galaxy's strategy to diversify its business beyond the cryptocurrency domain into the expansive landscape of AI infrastructure.
The Helios datacenter marks a critical step for Galaxy Digital, showcasing its commitment to meeting the surging demand for scalable energy and compute solutions across the United States. By undertaking this monumental project, Galaxy aims not only to solidify its position in the digital asset industry but also to contribute significantly to the evolution of AI capabilities across various sectors.
Conclusion
As the digital world continues to evolve, the importance of advanced data infrastructure becomes critical. Galaxy Digital's $1.4 billion financing for the Helios project represents more than just a financial maneuver; it's a strategic move that positions the company at the forefront of innovation in AI and HPC landscapes. With the groundwork laid and momentum building, all eyes will be on how Galaxy executes its vision for Helios in the coming years.
Topics Business Technology）
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