Key Highlights
- Galaxy Digital is launching a $3.507 billion high-yield bond offering, with pricing set for July 23.
- The capital will finance the second phase of its Helios Data Center Campus located in Dickens County, West Texas.
- CoreWeave (CRWV) has committed to 15-year lease agreements expected to produce more than $1 billion annually.
- Goldman Sachs and Morgan Stanley are leading the bond offering.
- Cumulative cash flow after debt obligations could hit approximately $3.8 billion through 2043.
Galaxy Digital (GLXY) is making its inaugural entry into the high-yield debt market, seeking to secure $3.507 billion via senior secured notes maturing in 2031.
This transaction is structured as a Rule 144A/Reg S private placement, with the final pricing date set for July 23. Goldman Sachs and Morgan Stanley are serving as joint bookrunners.
The capital raised will finance the second phase of Galaxy’s Helios Data Center Campus situated in Dickens County, West Texas. This expansion includes two structures delivering 400 MW of total utility capacity alongside 260 MW of critical IT load.
CoreWeave (CRWV) has executed long-term lease commitments spanning 15 years for the entire facility. These agreements are anticipated to deliver annual revenues exceeding $1 billion to Galaxy.
Galaxy expects an initial gross yield on cost of approximately 13.7%, with rent payments beginning in Q2 2027. Net operating income margins are forecasted at around 90%.
The issuing entity will amortize 4% of the initial principal amount each year, starting 10 months following construction completion.
The first phase of Helios became operational in early 2026. Construction on the second phase is scheduled to commence in 2027.
Rising Wave of Debt-Financed AI Data Centers
Galaxy is part of a broader industry movement leveraging junk bonds to bankroll AI infrastructure projects. Just last month, a subsidiary of Applied Digital Corp. secured $1.59 billion in high-yield financing to develop computing infrastructure for CoreWeave in North Dakota.
This financing model is gaining traction across the sector — infrastructure operators tapping high-yield debt markets, secured by extended lease commitments with CoreWeave serving as the primary tenant.
Historically, Galaxy Digital has relied on convertible note offerings for capital formation. This $3.5 billion bond issuance represents a strategic pivot toward conventional debt instruments as it expands its AI infrastructure operations.
Long-Term Cash Flow Outlook to 2043
Financial projections outlined in Galaxy’s offering materials indicate cumulative post-debt service cash flows could reach roughly $3.8 billion by 2043.
These estimates are grounded in the CoreWeave lease agreements and anticipated revenue generation once the second phase becomes operational.
Galaxy Digital emphasized that the offering’s completion on stated terms cannot be guaranteed. The presentation materials contain forward-looking statements accompanied by customary risk disclosures.
GLXY shares declined 0.24% at the time of the disclosure. Meanwhile, CoreWeave (CRWV) stock climbed 5.69% during the same trading session.
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