Key Takeaways
- Galaxy Digital is pursuing a debut junk-bond offering targeting $3.507 billion, with pricing set for July 23.
- Capital will finance the second phase of the Helios Data Center Campus located in Dickens County, West Texas.
- CoreWeave (CRWV) has committed to 15-year lease agreements expected to deliver more than $1 billion yearly in revenue.
- Goldman Sachs and Morgan Stanley are serving as lead underwriters for the transaction.
- Cumulative cash flow after debt service could hit approximately $3.8 billion through 2043, according to projections.
Galaxy Digital (GLXY) is making its debut in the high-yield debt market, aiming to secure $3.507 billion via senior secured notes maturing in 2031.
The transaction is structured as a Rule 144A/Reg S private placement, with final pricing expected on July 23. Goldman Sachs and Morgan Stanley are acting as lead managers.
Capital raised will support the second phase expansion of Galaxy’s Helios Data Center Campus situated in Dickens County, West Texas. This expansion encompasses two structures delivering a total utility capacity of 400 MW and critical IT capacity of 260 MW.
CoreWeave (CRWV) has secured 15-year leasing commitments for the entire facility. These agreements are anticipated to produce annual revenues exceeding $1 billion for Galaxy.
The transaction features an initial gross yield on cost of approximately 13.7%, with rent payments scheduled to begin in Q2 2027. Estimated net operating income margins are projected at around 90%.
The Galaxy subsidiary responsible for the bond issuance will execute annual principal repayments of 4%, commencing 10 months following construction completion.
The first phase of the Helios campus reached completion earlier this year in 2026. Construction on the second phase is scheduled to commence in 2027.
High-Yield Debt Fueling AI Data Center Expansion
Galaxy is following an emerging trend of leveraging the junk-bond market for AI data center development. In recent months, a subsidiary of Applied Digital Corp. successfully raised $1.59 billion through similar financing to build computing infrastructure for CoreWeave in North Dakota.
This financing model is gaining traction across the sector — infrastructure developers accessing high-yield debt markets, secured by extended lease commitments with CoreWeave serving as the primary tenant.
Traditionally, Galaxy Digital has funded operations through convertible note issuances. This $3.5 billion bond transaction represents a strategic pivot toward conventional debt instruments as the company expands its AI infrastructure portfolio.
Long-Term Cash Flow Outlook Extends to 2043
Illustrative financial models disclosed in Galaxy’s regulatory filing indicate cumulative cash flow after debt obligations could reach roughly $3.8 billion by 2043.
These forecasts rely on the CoreWeave lease commitments and anticipated revenue growth following the Phase II operational launch.
Galaxy Digital emphasized that completion of the offering on stated terms remains subject to market conditions. The company’s presentation contains forward-looking statements and customary risk disclosures.
GLXY shares declined 0.24% at the time of the disclosure. CoreWeave (CRWV) stock gained 5.69% during the same trading session.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
