Key Highlights
- Galaxy Digital is entering the high-yield bond market with a debut offering of $3.507 billion in senior secured notes, set to price on July 23.
- The 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 annually in revenue.
- Goldman Sachs and Morgan Stanley are serving as lead underwriters for the transaction.
- Cumulative cash flow after debt servicing could total approximately $3.8 billion through 2043.
Galaxy Digital (GLXY) is making its inaugural move into the high-yield debt market, seeking 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 to occur on July 23. Goldman Sachs and Morgan Stanley have been appointed as lead managers.
The raised capital will be directed toward constructing Phase II of the Helios Data Center Campus in Dickens County, West Texas. This expansion includes two facilities boasting a total utility capacity of 400 MW and critical IT capacity of 260 MW.
CoreWeave (CRWV) has committed to leasing the entire facility under 15-year agreements. These commitments are expected to deliver annual revenues exceeding $1 billion to Galaxy.
The transaction features an initial gross yield on cost of approximately 13.7%, with rental payments scheduled to begin in Q2 2027. Net operating income margins are projected to reach around 90%.
The Galaxy subsidiary responsible for the note issuance will make annual principal repayments equal to 4% of the original amount, commencing 10 months following construction completion.
Phase I of the Helios facility reached completion in early 2026. Construction of Phase II is slated to commence in 2027.
High-Yield Financing Emerges as Standard for AI Data Centers
Galaxy is following an emerging industry playbook for financing AI infrastructure through the junk-bond market. Just last month, a subsidiary of Applied Digital Corp. successfully raised $1.59 billion using similar instruments to finance computing facilities for CoreWeave in North Dakota.
This financing model is establishing itself as the preferred approach ā infrastructure developers issue high-yield bonds secured by extended lease commitments with CoreWeave serving as the primary tenant.
Historically, Galaxy Digital has relied on convertible note offerings for capital raises. This $3.5 billion bond issuance represents a significant shift toward conventional debt instruments as the company expands its AI infrastructure division.
Financial Outlook Extending to 2043
According to illustrative financial models included in Galaxy’s regulatory filing, cumulative cash flow after debt service payments is projected to reach roughly $3.8 billion by 2043.
These forecasts rely on the contracted CoreWeave lease agreements and anticipated revenue acceleration following Phase II’s operational launch.
Galaxy Digital emphasized that completion of the offering on the outlined terms cannot be guaranteed. The company’s presentation incorporates forward-looking estimates along with customary risk disclosures.
At the time of the announcement, GLXY shares had declined 0.24%. Meanwhile, CoreWeave (CRWV) shares climbed 5.69% during the trading session.
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