Galaxy and CoreWeave Expand Alliance with Data Center Expansion
Galaxy Digital (GLXY) announced a strategic alliance with CoreWeave (CRWV), strengthening its ambitions in the rapidly growing field of artificial intelligence (AI) and high-performance computing (HPC) data centers.
As part of the new agreement, CoreWeave will gain access to an additional 260 megawatts (MW) of critical IT load at the Galaxy Helios data center campus in West Texas, increasing the total dedicated capacity for AI and HPC operations at the site to 393 MW.
The move marks another shift away from Bitcoin mining for Galaxy, as the Helios campus acquired from Argo Blockchain in 2022 becomes the foundation of the next generation of digital infrastructure. CEO Mike Novogratz noted 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 up 60% from their April lows. CoreWeave has gained 13% and is currently trading 10% higher.
The announcement follows the March lease agreement for Phase 1, which covers 133 MW over 15 years. The new commitment for Phase 2 mirrors the terms of the original agreement and demonstrates both parties’ confidence in the capacity and strategic location of the facility. With infrastructure upgrades already underway, Phase 1 is expected to be operational by mid-2026, with Phase 2 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 options to monetize its legacy Bitcoin mining infrastructure, indicating a decisive turnaround in its operations.
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Source: cryptonews.net
