Galaxy Shares Up on $15bn AI Pivot Beyond Crypto Volatility

The letter detailed an accelerated shift into AI infrastructure and tokenized financial markets that reframes the company's long-term growth beyond traditional crypto price cycles.

At its core lies Helios, the company's flagship data centre campus in West Texas. The site holds approvals for more than 1.6 gigawatts of power capacity, with the initial 800 megawatts already leased to CoreWeave, a major provider of specialized cloud computing for artificial intelligence workloads. That lease represents over $7.5bn in capital investment, while the full campus – including an additional 830 megawatts approved under a build-to-suit model – points to a long-term digital infrastructure value well north of $15bn.

AI infrastructure emerges as core growth engine

The Helios build out signals a structural departure for Galaxy Digital, which has long relied on trading income and digital asset price swings. By repurposing former crypto mining assets for AI and high-performance computing, the firm now supplies compute capacity in a market defined by persistent structural demand rather than cyclical volatility.

Novogratz described demand for compute as "not a cycle. It is a structural condition that will define the next decade." The company aims to expand beyond Helios, building and acquiring additional sites to create a diversified global portfolio of large-scale infrastructure assets across geographies, tenants and technologies. This positions Galaxy for more predictable, long-duration revenue streams less tied to crypto market moves. The first phase of power delivery to CoreWeave is on track for the coming months.

Institutional finance shifts onchain

Galaxy's repositioning also deepens its role in tokenized financial infrastructure. Novogratz noted the sector moving from narrative to practical infrastructure, with custody, regulation and tokenization unlocking institutional capital at scale.

Key transactions from late 2025 illustrate the momentum. Galaxy partnered with State Street to launch a tokenized liquidity fund targeting institutional cash management, offering T+0 settlement and 24/7 liquidity for liability-driven investors. That same month, the firm participated in a JPMorgan-arranged commercial paper issuance executed entirely on the Solana blockchain. Debt was issued, settled and redeemed on the public chain using USDC stablecoin, marking an early example of institutional onchain debt activity and drawing participation from players such as Coinbase and Franklin Templeton.

Execution risks remain amid capital intensity

Despite the strong market reaction, challenges persist. Galaxy reported a full-year 2025 net loss of $241mn on 3 Feb, driven by lower digital asset prices and approximately $160mn in one-time costs related to bitcoin mining infrastructure, corporate reorganization and other items. However, its core digital asset business generated an adjusted gross profit of $505mn, signalling underlying operational strength.

Data centre expansion demands significant capital, and power grid upgrades in Texas pose potential delays. Analysts remain constructive on the stock, viewing the pivot as a path to reduced correlation with pure crypto cycles and exposure to secular AI and tokenization trends.

For institutional and retail investors, the evolution offers differentiated exposure: lower reliance on Bitcoin or Ether price action, combined with tailwinds in AI compute and blockchain-enabled finance. Galaxy manages roughly $12bn in platform assets and intends to remain at the heart of the digital economy for decades, blending its crypto-native expertise with traditional finance capabilities.