TLDR
- Galaxy Digital plans to raise $3.507 billion through its first junk-bond sale, priced July 23.
- Funds will develop Phase II of the Helios Data Center Campus in Dickens County, West Texas.
- The facility is leased to CoreWeave (CRWV) on 15-year contracts generating over $1 billion in annual revenue.
- Morgan Stanley and Goldman Sachs are managing the offering.
- Projected cumulative post-debt service cash flow is expected to reach ~$3.8 billion by 2043.
Galaxy Digital (GLXY) is tapping the junk-bond market for the first time, looking to raise $3.507 billion through senior secured notes due 2031.
The offering is a Rule 144A/Reg S private placement, with pricing scheduled for July 23. Morgan Stanley and Goldman Sachs are running the books.
The proceeds will fund Phase II of Galaxy’s Helios Data Center Campus in Dickens County, West Texas. That phase covers two buildings with a combined 400 MW utility capacity and 260 MW critical IT capacity.
CoreWeave (CRWV) has signed 15-year lease agreements for the facility. Those contracts are projected to generate over $1 billion in annual revenue for Galaxy.
The deal starts with a ~13.7% gross yield on cost, with rent commencement targeted for Q2 2027. Projected NOI margins sit at roughly 90%.
The Galaxy unit issuing the notes will repay 4% of the original principal annually, beginning 10 months after construction wraps.
Phase I of the Helios campus was completed earlier in 2026. Phase II is set to break ground in 2027.
A Growing Trend in AI Infrastructure Debt
Galaxy isn’t alone in using the junk-bond market to fund AI data center buildouts. Last month, an Applied Digital Corp. subsidiary raised $1.59 billion in the same market to finance computing capacity for CoreWeave in North Dakota.
The structure is becoming a repeating pattern â AI infrastructure developers raising high-yield debt, backed by long-term leases with CoreWeave as the anchor tenant.
Galaxy Digital has historically raised capital through convertible note offerings. This $3.5 billion bond sale marks a step into more traditional debt financing as it builds out its AI infrastructure arm.
Projected Returns Through 2043
The illustrative financials included in Galaxy’s filing show cumulative post-debt service cash flow growing to approximately $3.8 billion by 2043.
Those projections are based on the CoreWeave lease terms and the assumed revenue ramp once Phase II comes online.
Galaxy Digital noted that no assurance has been given that the offering will close on the described terms. The presentation includes forward-looking projections and standard disclaimers.
GLXY was down 0.24% at the time of the announcement. CoreWeave (CRWV) was up 5.69% on the day.
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