Galaxy Digital's Stock Slumps on Texas Data Center Expansion Plans
Galaxy Digital's stock fell over 10% to a three-month low on Tuesday as the company announced its second major AI and high-performance computing campus in Texas. The acquisition of 500 acres in McGregor, McLennan County, is part of Galaxy's broader move away from Bitcoin mining and into AI and data center infrastructure.
The new campus will have an initial capacity of 74 megawatts (MW), with plans to expand to a multi-hundred-megawatt facility through 2030. Galaxy believes the demand for compute power is a structural shift, not just a passing cycle, and that building infrastructure strengthens communities. The company's CEO, Mike Novogratz, stated that 'the right way to meet' this demand is by investing in data centers.
Galaxy Digital's acquisition of the McGregor site marks its second major investment in Texas after the 1.6 GW Helios campus in Dickens County. The new campus will generate significant revenue for the city, with Galaxy paying $7.5 million for the land. Novogratz emphasized that this is a long-term economic partnership between Galaxy and the local community.
The move away from Bitcoin mining is part of a broader trend among companies to focus on AI and data center infrastructure. Galaxy Digital's shift highlights the growing demand for compute power, which is driving investment in data centers.