Galaxy Digital Closes LUNA Chapter With $200M Payout, Eyes AI Future With CoreWeave Deal
Galaxy Digital is cutting ties with one of crypto’s darkest sagas. The Mike Novogratz-led firm will pay $200 million to the New York Attorney General to settle claims related to its involvement in the 2022 collapse of Terra’s LUNA token, once a top-ten cryptocurrency by market cap.
The fallout from LUNA’s implosion erased nearly $60 billion from the crypto ecosystem. Galaxy’s investment exposure, trading activity, and public endorsements of LUNA were all scrutinized by regulators in the years that followed.
Despite the heavy price tag, Galaxy is showing strength. The firm posted $174 million in Q4 earnings and $365 million in profit for all of 2024—numbers that include the legal provision for the settlement. Earnings per diluted share came in at $1.02.
The company is also doubling down on infrastructure bets. In a bold pivot into AI and high-performance computing, Galaxy has entered a 15-year lease with CoreWeave, supplying 133 megawatts of power from its Helios data center in Texas. The deal could net Galaxy up to $4.5 billion over the contract’s duration.
Still, the market response was cool—GLXY shares dipped 3.54% on Thursday.
Galaxy may be paying for the past, but it’s clearly investing in the future.
About The Author
More Stories
Bitcoin drops under $71,000 while stocks end the day near session lows as expectations for a 2026 Fed rate cut dim further.
Fed pauses rate changes as the Iran conflict clouds the economic outlook and fuels inflation fears.
Cheap money is now behind us as ongoing conflict with Iran locks in a higher baseline for inflation.