Shares of Galaxy Digital (GLXY) are ahead 2% on Tuesday after the crypto-focused financial firm beat third quarter revenue expectations by a wide margin and confirmed major progress on its Helios data center project. Led by CEO Mike Novogratz, the company reported $29 billion in revenue, nearly doubling analyst forecasts of $16 billion. Galaxy credited its trading business and growth in digital asset valuations for the outperformance. The company also announced that CoreWeave (CRWV), a cloud infrastructu ...

Core Insights - Galaxy Digital has secured a $460 million private investment from a major asset manager to support its data center business and corporate needs [1][2] - The investment involves the issuance of 9,027,778 new Class A shares and the sale of 3,750,000 shares by executives at a price of $36 per share, reflecting an 8.5% discount from the closing price [2] - The transaction is expected to close around October 17, pending approval from the Toronto Stock Exchange [2] Business Strategy - The funds will be utilized to develop the Helios data center campus, which aims to deliver 133 megawatts of critical IT load by the first half of 2026 [3] - Galaxy Digital has shifted its focus from bitcoin mining to AI and high-performance computing (HPC) due to the challenges in the mining sector [3][4] - The company has previously secured $1.4 billion in funding to expand Helios and has a lease agreement with AI cloud provider CoreWeave for all 800 megawatts of approved power capacity [4] Market Reaction - The pivot towards AI and HPC has been positively received by investors, with Galaxy shares rising 3% in post-market trading following the announcement of the new investment [5]