Galaxy Digital (NASDAQ:GLXY) shares dropped by 10.06% on Tuesday to $24.09 due to $1.4 billion debt facility for data center expansion in West Texas. CEO Mike Novogratz says project will diversify beyond crypto into AI infrastructure. Company provided $350 million equity; rest covered by debt facility secured at 80% loan to cost.

Investors have fully priced in Galaxy Digital’s (NASDAQ:GLXY) $1.4 billion data center expansion, causing share prices to drop by 10.06% to $24.09 per share. The debt financing facility, successfully raised by the company, will be used to develop the Helios data center campus in West Texas for AI and high-performance computing operations.

Galaxy Digital (NASDAQ:GLXY) founder and CEO Mike Novogratz views the $1.4 billion debt facility as a milestone in transforming Helios into a next-generation AI and HPC data center campus. The company provided $350 million equity, with the remaining construction costs to be covered by the debt facility secured at 80% loan to cost.

The $1.4 billion debt facility for Galaxy Digital’s (NASDAQ:GLXY) data center expansion in West Texas has a 36-month term and is secured by all assets associated with the first phase of Helios’s buildout. While GLXY has potential, some AI stocks may offer higher returns with limited downside risk. Visit Insider Monkey for more insights on AI stocks.

Read more at Yahoo Finance: Galaxy Digital (GLXY) Down After Billion-Dollar Expansion