Key Takeaways
- • Galaxy Digital's subsidiary Galaxy Helios Data Centers II LLC priced a $3.507 billion private offering of 9.875% senior secured notes due August 1, 2031, with closing expected on July 28, 2026.
- • Net proceeds will fund development and construction of a 400 megawatt utility capacity data center project spanning eight data halls across approximately 260 acres in Dickens County, Texas, delivering 260 MW of critical IT capacity.
- • Notes carry a 9.875% annual coupon payable semi-annually beginning February 1, 2027, with amortization at 4.00% per annum of original principal, commencing at least ten months after project completion.
- • The debt is fully guaranteed by Galaxy Helios II LLC and secured by first-priority liens on substantially all assets of the issuer and guarantor, plus equity interests held by the direct parent company.
- • This financing underscores Galaxy Digital's capital-intensive expansion in data center infrastructure, a strategic asset class increasingly critical to digital asset operations and AI computing demand.
Summary
Galaxy Digital Inc. (NASDAQ: GLXY) announced the pricing of a $3.507 billion private offering of senior secured notes through its indirect subsidiary Galaxy Helios Data Centers II LLC on July 23, 2026. The notes carry a coupon rate of 9.875% per annum and mature on August 1, 2031, with expected closing on July 28, 2026, subject to market and other customary conditions.
The company intends to deploy net proceeds toward financing a substantial portion of a data center development project in Dickens County, Texas. The initiative encompasses construction of two buildings containing eight data halls with a combined 400 megawatts of utility capacity and 260 megawatts of critical IT capacity across approximately 260 acres. This infrastructure expansion reflects Galaxy Digital's strategic positioning in the data center sector, which serves as foundational infrastructure for digital asset operations and high-performance computing environments.
The debt structure reflects institutional-grade security features. Interest will be paid semi-annually in arrears on February 1 and August 1 of each year, beginning February 1, 2027. The notes amortize at 4.00% per annum of the original principal amount, with amortization payments commencing at least ten months after project completion. The issuer has additionally allocated proceeds to fund debt service reserves. Galaxy Helios II LLC, a wholly owned direct subsidiary of the issuer, provides full and unconditional guarantees, and the notes are secured by first-priority liens on substantially all assets of both entities (excluding certain carve-outs) as well as equity interests held by the direct parent company.
This financing transaction demonstrates Galaxy Digital's significant capital requirements for infrastructure buildout and reflects confidence in the demand environment for utility-scale data center capacity supporting digital assets and compute-intensive workloads. The five-year maturity window and senior secured structure align with typical project finance timeframes for data center infrastructure development.
The company intends to deploy net proceeds toward financing a substantial portion of a data center development project in Dickens County, Texas. The initiative encompasses construction of two buildings containing eight data halls with a combined 400 megawatts of utility capacity and 260 megawatts of critical IT capacity across approximately 260 acres. This infrastructure expansion reflects Galaxy Digital's strategic positioning in the data center sector, which serves as foundational infrastructure for digital asset operations and high-performance computing environments.
The debt structure reflects institutional-grade security features. Interest will be paid semi-annually in arrears on February 1 and August 1 of each year, beginning February 1, 2027. The notes amortize at 4.00% per annum of the original principal amount, with amortization payments commencing at least ten months after project completion. The issuer has additionally allocated proceeds to fund debt service reserves. Galaxy Helios II LLC, a wholly owned direct subsidiary of the issuer, provides full and unconditional guarantees, and the notes are secured by first-priority liens on substantially all assets of both entities (excluding certain carve-outs) as well as equity interests held by the direct parent company.
This financing transaction demonstrates Galaxy Digital's significant capital requirements for infrastructure buildout and reflects confidence in the demand environment for utility-scale data center capacity supporting digital assets and compute-intensive workloads. The five-year maturity window and senior secured structure align with typical project finance timeframes for data center infrastructure development.
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