Galaxy Digital to Scale Back Bitcoin Mining Amid Shifts to AI Hosting for CoreWeave

Galaxy Digital is set to reduce its Bitcoin mining output in the coming quarters as it converts its Texas data center into an AI and HPC facility under a new 15-year hosting agreement with CoreWeave.
In its fourth-quarter earnings report on Friday, Galaxy disclosed it mined 977 BTC in 2024, generating $22.1 million in mining revenue against $11.9 million in expenses after curtailment credits. This translated to a 46% direct mining profit margin. The company reported a marginal cost of under $38,000 per bitcoin in Q4, with a full-year average of approximately $26,000.
However, Galaxy expects its hashrate under management and overall BTC production to decline as it reallocates resources from Bitcoin mining to support CoreWeave’s AI infrastructure. CoreWeave debuted on Wall Street Friday with a downsized IPO valuation of $23 billion.
The transition centers on Galaxy’s Helios campus, acquired from Argo Blockchain in late 2022 as part of a broader deal to settle Argo’s outstanding loans.
As part of the shift, Galaxy terminated its colocation agreement with Argo last year, prompting Argo to seek new hosting partners. The move underscores Galaxy’s strategic pivot away from traditional mining toward AI and HPC hosting amid the decline of Bitcoin mining profitability after the halving.
Under the newly signed lease agreement with CoreWeave, Galaxy will deliver 133 megawatts of critical IT load at Helios. The company expects the deal to generate approximately $4.5 billion in revenue over the 15-year term.
Galaxy’s shift to AI hosting marks the latest move in a broader trend, as digital asset infrastructure companies increasingly diversify into compute-intensive workloads beyond Bitcoin mining.