Novogratz Pushes Galaxy Past Bitcoin Mining Into $1B AI Power Business

The tract sits successful Dickens County, astir 60 miles from Lubbock. It started arsenic a bitcoin mining installation built by Argo Blockchain successful 2021. Galaxy bought it successful precocious 2022 for astir $65 cardinal aft Argo ran into fiscal occupation during the crypto winter.

Bitcoin mining margins tightened aft the April 2024 halving. Power costs rose, trouble climbed, and artificial quality (AI) companies started paying much for the aforesaid energy miners had relied on. Galaxy work the displacement and moved.

Coreweave signed connected arsenic anchor tenant successful March 2025 nether a 15-year lease. The institution exercised 2 much options implicit the pursuing months, bringing its full committedness to 526 megawatts of captious IT load crossed 3 phases. That covers the afloat 800 megawatts of gross powerfulness presently approved astatine the site.

What Galaxy Delivered

Crews stripped retired immersion cooling tanks and ASIC racks built for mining. In their place, they installed Tier III N+1 redundant powerfulness systems, high-density electrical infrastructure for GPU clusters, and much than 100 miles of fibre laterals connecting to long-haul routes.

Rent connected Phase I started successful the 2nd 4th of 2026. Galaxy says the afloat 526 megawatt buildout, erstwhile operational, volition make much than $1 cardinal successful mean yearly revenue. Phase I unsocial is projected to bring successful astir $4.5 cardinal successful lease payments implicit 15 years, oregon astir $300 cardinal a year.

Galaxy funded the enactment with a $1.4 cardinal project-level indebtedness facility, astir $350 cardinal successful equity, and a abstracted $460 cardinal rise from an extracurricular plus manager successful precocious 2025.

Novogratz connected the Milestone

Mike Novogratz, laminitis and CEO of Galaxy, remarked that the institution proved it tin execute hyperscale AI operation connected fund and connected schedule. He said the displacement toward high-density, AI-ready powerfulness is structural, not cyclical.

He wrote:

“Helios is present generating gross crossed its full 133 MW of IT load, and greenfield enactment connected Phase II is already underway. The request for high-density, AI-ready powerfulness is not a cycle; it is simply a structural shift, and Galaxy is built to conscionable it.”

Phase II is already nether construction. Civil and structural enactment is underway connected 260 megawatts of further captious IT load, with information hallway deliveries expected successful the archetypal fractional of 2027. Phase III is targeted for 2028.

Why It Matters for the Sector

Coreweave brings its ain GPUs and networking. Galaxy builds and operates the powerfulness and carnal infrastructure, past passes done astir operating costs. That operation supports site-level EBITDA margins adjacent 90 percent, according to Galaxy.

The statement mirrors a broader signifier among bitcoin miners. Sites built for inexpensive power, unfastened land, and substation entree are being repurposed for AI grooming and inference, wherever tenants similar Coreweave wage steadier, contracted rates alternatively of exposing gross to bitcoin’s terms swings.

Galaxy has expanded its onshore power astatine Helios to much than 2,200 acres. Approved powerfulness capableness present stands astatine 1.63 gigawatts, with imaginable to standard toward 3.6 gigawatts pending further grid studies.

What Comes Next

Roughly 830 megawatts of approved capableness astatine Helios remains uncontracted arsenic of aboriginal 2026. Galaxy has signaled openness to further tenants. The institution is besides weighing a 2nd field adjacent Waco. For bitcoin miners watching from the sidelines, Helios offers a moving template. A installation built for hashrate is present anchoring 1 of the larger AI infrastructure leases signed to date.