Galaxy Digital (GLXY) has launched its first-ever junk-bond sale, aiming to raise $3.507 billion through senior secured notes due 2031. The offering, a Rule 144A/Reg S private placement priced on July 23, is being managed by Morgan Stanley and Goldman Sachs. Proceeds will fund Phase II of the Helios Data Center Campus in Dickens County, West Texas, which includes two buildings with 400 MW of utility capacity and 260 MW of critical IT capacity.
The project is underpinned by 15-year lease agreements with CoreWeave (CRWV), expected to generate over $1 billion in annual revenue for Galaxy. The notes carry a gross yield on cost of approximately 13.7%, with rent commencement targeted for Q2 2027 and projected NOI margins around 90%. The issuing subsidiary will repay 4% of the original principal annually starting 10 months after construction is completed.
Phase I of Helios was finished earlier in 2026, while Phase II is set to break ground in 2027. Illustrative financials show cumulative post-debt service cash flow reaching roughly $3.8 billion by 2043. The move mirrors a growing trend where AI infrastructure developers tap the high-yield debt market—developers have raised about $28 billion this year for AI data center construction, including a $1.59 billion junk bond by an Applied Digital subsidiary for a CoreWeave facility in North Dakota.
Galaxy Digital, traditionally reliant on convertible notes, is diversifying its financing as it expands AI infrastructure alongside its digital asset business. The company recently launched a $5 million Bitcoin Quantum Readiness Initiative and secured New York regulatory licenses for institutional crypto services. Following the announcement, GLXY stock edged down 0.24%, while CoreWeave shares rose 5.69%.
