Backing Commonwealth Fusion Systems: The Future of Energy
Why We Invested in Commonwealth Fusion Systems
As we continue to deepen our focus on the high-performance computing infrastructure stack, one truth has become undeniable: at the foundation of every technological breakthrough—AI, spatial computing, blockchain, and beyond—is energy. Applications will rise and fall. Paradigms will shift. But the demand for power continues to outpace our ability to generate it.
To support a truly digitized and electrified future, we need a new class of energy technology—one that’s clean, scalable, and unbounded by geography, fuel constraints, or political complexity. That’s why we invested in Commonwealth Fusion Systems (CFS).
The Case for Fusion—Now
Fusion has long been seen as the “holy grail” of energy: a virtually limitless, carbon-free power source that replicates the reaction powering the sun. Unlike traditional nuclear fission, fusion does not produce long-lived radioactive waste, carries no meltdown risk, and draws from fuel sources—deuterium and tritium—that are abundant and globally accessible.
But what makes fusion particularly compelling today is its alignment with the infrastructure needs of tomorrow. As compute demand surges across hyperscalers, industrial AI applications, and digital manufacturing, we must rethink our energy baseline—not just supplement it with renewables.
Fusion is not constrained by geography or access to finite natural resources. It doesn’t require large quantities of rare earths or long global supply chains. Fusion power plants can be built virtually anywhere—providing stable, distributed energy without dependency on sunlight, wind, rainfall, or underground carbon. This unlocks energy sovereignty for regions currently dependent on imports or fossil-intensive grids.
Betting on Fusion’s First Scaled Commercialization
When we first engaged with CFS, several core differentiators stood out:
Proven Physics: CFS’s tokamak-based architecture builds on decades of MIT research, unlike many fusion efforts rooted in speculative science.
Magnet Breakthroughs: Their proprietary high-temperature superconducting (HTS) magnets allow for dramatically smaller, more efficient power plants.
Capital and Momentum: Before this investment round, CFS had already raised over $2B, with a cap table that reflects a rare convergence of top-tier venture, sovereign, strategic, and institutional investors.
Vertically Integrated Model: From manufacturing to regulatory strategy, CFS is architected to scale like a next-gen infrastructure company—not just a lab project.
CFS was, and remains, a compelling fit with our thesis: investing in technologies that underpin the infrastructure of tomorrow.
CFS: Turning Decades of Physics into Infrastructure
CFS, spun out of MIT’s Plasma Science and Fusion Center, is turning fusion from theory into scalable infrastructure. They’re not chasing scientific novelty—they’re engineering delivery systems. Their strategy is grounded in three things:
Proven Physics: CFS uses a tokamak-based architecture, the most validated fusion design, enhanced by high-temperature superconducting (HTS) magnets that dramatically shrink the reactor footprint and increase efficiency.
Hardware Execution: CFS has built the world’s most powerful fusion-relevant magnet and now is building SPARC—the first privately funded net-energy fusion machine.
Commercial Roadmap: Their next step, ARC, is a 400MW compact power plant that can be manufactured modularly and deployed at scale, with Google already an early customer for offtake when the first ARC’s power hits the grid in the early 2030s.
A Pivotal Moment
Projections vary, but consensus agrees on one point: global electricity consumption will multiply dramatically by 2050. Some forecasts call for a 3x increase; others see demand growing tenfold. That growth will be driven by AI workloads, industrial electrification, hydrogen production, urbanization, and the digitization of everything from finance to food systems.
The implications are vast—and urgent. Today’s energy mix cannot scale to meet this need without either wrecking the climate or compromising economic growth. CFS offers an answer. Their fusion power plants:
Provide 24/7 baseload power
Are modular, siting-agnostic, and scalable
Deliver cost-competitive electricity
Have a pathway to mass deployment
Progress and Momentum
On July 28, CFS published this video. CFS has hit major execution milestones:
SPARC assembly is well underway in the Tokamak Hall, with the cryostat base (the machine’s structural foundation) now installed.
Critical support buildings around SPARC are being activated, including the utility building.
The cryogenic refrigerator (to cool the superconducting magnets) is installed and has begun operations.
A suite of advanced diagnostics tools is being installed to capture SPARC plasma data.
CFS has developed a global supply chain by adapting suppliers from other industries to meet fusion needs.
This ecosystem now reliably supports SPARC construction and is scalable to support ARC.
The magnet factory is accelerating:
Some processes for SPARC magnets are now completed, proving that CFS can ramp, operate, and fulfill production orders.
The first ARC plant will be sited in Virginia, in partnership with Dominion Energy.
CFS signed a landmark offtake agreement: Google has purchased 200 MW of ARC fusion power.
This is the largest fusion power deal ever signed and a signal of serious market readiness for clean baseload energy.
Alignment with our Thesis
CFS aligns with our view that energy is not a sector—it’s a stack. It is the base layer upon which every other modern system relies. Investing in next-generation energy is not only about powering clean growth—it’s about enabling compute, commerce, and civilization itself to scale. CFS doesn’t just match that vision. They’re building it—plant by plant, magnet by magnet. At Galaxy, we invest in the frontier. CFS isn’t just building a fusion machine—they’re building the backbone of our future energy economy.
Energy is not a sector—it’s the foundation of progress. From AI to electrification, every frontier depends on it. Investing in next-generation energy is how we ensure the future is not just imagined, but built.
Legal Disclosure:
This document, and the information contained herein, has been provided to you by Galaxy Digital Inc. and its affiliates (“Galaxy Digital”) solely for informational purposes. This document may not be reproduced or redistributed in whole or in part, in any format, without the express written approval of Galaxy Digital. Neither the information, nor any opinion contained in this document, constitutes an offer to buy or sell, or a solicitation of an offer to buy or sell, any advisory services, securities, futures, options or other financial instruments or to participate in any advisory services or trading strategy. Nothing contained in this document constitutes investment, legal or tax advice or is an endorsement of any of the stablecoins mentioned herein. You should make your own investigations and evaluations of the information herein. Any decisions based on information contained in this document are the sole responsibility of the reader.
Readers should consult with their own advisors and rely on their independent judgement when making financial or investment decisions.
We, along with Galaxy, hold a financial interest in AsterDex, Bitcoin, and Tether. Galaxy regularly engages in buying and selling AsterDex, Bitcoin, Hyperliquid, and Tether, including hedging transactions, for its own proprietary accounts and on behalf of its counterparties. Galaxy and/or I have provided services to or received services to vehicles that invest in AsterDex, Bitcoin, Hyperliquid, and Tether. If the value of such assets increases, those vehicles may benefit, and Galaxy’s service fees may increase accordingly. For more information, please refer to Galaxy’s public filings and statements. Cryptocurrencies, including AsterDex, Bitcoin, Hyperliquid, and Tether, are inherently volatile and risky and ultimate market movements may not align in whole or in part with perspectives expressed here.
For additional risks related to digital assets, please refer to the risk factors contained in filings Galaxy Digital Inc. makes with the Securities and Exchange Commission (the “SEC”) from time to time, including in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, filed with the SEC on August 5, 2025, available at www.sec.gov.
Certain statements in this document reflect Galaxy Digital’s views, estimates, opinions or predictions (which may be based on proprietary models and assumptions, including, in particular, Galaxy Digital’s views on the current and future market for certain digital assets), and there is no guarantee that these views, estimates, opinions or predictions are currently accurate or that they will be ultimately realized. To the extent these assumptions or models are not correct or circumstances change, the actual performance may vary substantially from, and be less than, the estimates included herein. None of Galaxy Digital nor any of its affiliates, shareholders, partners, members, directors, officers, management, employees or representatives makes any representation or warranty, express or implied, as to the accuracy or completeness of any of the information or any other information (whether communicated in written or oral form) transmitted or made available to you. Each of the aforementioned parties expressly disclaims any and all liability relating to or resulting from the use of this information. Certain information contained herein (including financial information) has been obtained from published and non-published sources. Such information has not been independently verified by Galaxy Digital and, Galaxy Digital, does not assume responsibility for the accuracy of such information. Affiliates of Galaxy Digital may have owned, hedged and sold or may own, hedge and sell investments in some of the digital assets, protocols, equities, or other financial instruments discussed in this document. Affiliates of Galaxy Digital may also lend to some of the protocols discussed in this document, the underlying collateral of which could be the native token subject to liquidation in the event of a margin call or closeout. The economic result of closing out the protocol loan could directly conflict with other Galaxy affiliates that hold investments in, and support, such token. Except where otherwise indicated, the information in this document is based on matters as they exist as of the date of preparation and not as of any future date, and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date hereof. This document provides links to other Websites that we think might be of interest to you. Please note that when you click on one of these links, you may be moving to a provider’s website that is not associated with Galaxy Digital. These linked sites and their providers are not controlled by us, and we are not responsible for the contents or the proper operation of any linked site. The inclusion of any link does not imply our endorsement or our adoption of the statements therein. We encourage you to read the terms of use and privacy statements of these linked sites as their policies may differ from ours. The foregoing does not constitute a “research report” as defined by FINRA Rule 2241 or a “debt research report” as defined by FINRA Rule 2242 and was not prepared by Galaxy Digital Partners LLC. Similarly, the foregoing does not constitute a “research report” as defined by CFTC Regulation 23.605(a)(9) and was not prepared by Galaxy Derivatives LLC. For all inquiries, please email [email protected]. ©Copyright Galaxy Digital Inc. 2025. All rights reserved.