The market is experiencing a landmark shift: mining infrastructure is increasingly giving way to high-performance computing for artificial intelligence. Galaxy Digital, the investment company of Mike Novogratz, has officially completed the first phase of converting the former Helios mining campus in West Texas.

133 MW of Critical Load Already Operational

The first phase of the project was completed strictly on time and within budget. All 133 megawatts of critical IT load have been transferred to hyperscaler CoreWeave under a 15-year lease agreement and are already generating full revenue. This demonstrates Galaxy's high operational discipline and the growing demand for ready-made data centers from cloud computing giants.

Second Phase: 260 MW by 2027

Construction of the second phase of the data center is already underway. Deliveries of data halls totaling 260 MW are planned to begin in the first half of 2027. Notably, CoreWeave has committed to all three phases at once, totaling 526 MW of critical IT load. This covers the entire current volume of 800 MW of gross capacity, already approved and contracted at the Helios site.

Financial Outlook and Current Losses

According to Galaxy's forecasts, the average annual revenue from these contracts will exceed $1 billion. However, in the first quarter of 2026, the company reported a net loss of $216 million. The main reason is the approximately 20% decline in digital asset prices. Nevertheless, long-term contracts with CoreWeave provide a stable cash flow independent of crypto market volatility.

Recall that Galaxy acquired Helios in late 2022 for $65 million from the financially troubled Argo Blockchain. The deal proved extremely timely: the company began transitioning the facility from mining to AI infrastructure. In January 2026, the site received an additional 830 MW of capacity, bringing the total approved volume to over 1.6 GW.

Expert Opinion

This case is a vivid example of how mining companies are adapting to the new reality. Given that the average cost of mining Bitcoin, according to JPMorgan, has reached $78,000, and 20% of miners are operating at a loss, the shift to AI computing is becoming not just a growth strategy but a matter of survival. Galaxy Digital, by turning a mining farm into an AI data center, is setting a trend for the entire industry.