Digital asset company Galaxy Digital Holdings has secured a $1.4 billion financing facility to help develop an AI data center campus in West Texas, as per an official press release by the company. As part of a partnership with CoreWeave, the money will be used to build on the initial phase of its AI operations.
Galaxy Digital’s loan-to-cost ratio for the project is 80%
To secure the loan, Galaxy Digital had to provide equity backing of $350 million. The debt facility will cover the remaining costs of the project, creating a loan-to-cost ratio of 80%.
A high loan-to-cost ratio is usually considered to be associated with a riskier investment, as the borrowing firm will have to pay higher interest for funding their project.
“This financing marks a major milestone in our transformation of Helios into a next-generation AI and HPC datacenter campus,” said CEO Mike Novogratz.
“We’re on track and excited to deliver the first phase of power to CoreWeave beginning in early 2026. This project is a key step in diversifying Galaxy’s business model as we expand beyond crypto and into the broader AI infrastructure space.” He also said.
The loan facility has a fixed term of 36 months.
Source: Investing.com