Key Takeaways
- • Galaxy Digital is raising $3.5 billion through its first junk-bond offering, with five-year notes marketed at approximately 9% yield, priced on Thursday with Morgan Stanley and Goldman Sachs as lead underwriters.
- • Proceeds will fund the Helios data center campus in Dickens County, Texas, a 1.63-gigawatt capacity facility where CoreWeave has committed to lease 526 megawatts of computing capacity across 15-year leases expected to generate over $1 billion in average annual revenue.
- • Phase I of Helios delivered 133 megawatts of critical IT load to CoreWeave earlier in 2026, with Phase II deliveries expected in the first half of 2027, demonstrating near-term execution on the data center expansion plan.
- • The offering reflects strong institutional appetite for AI infrastructure debt, with data center developers raising approximately $28 billion in US junk bonds year-to-date for AI infrastructure projects.
Summary
Galaxy Digital, a New York-based cryptocurrency and digital infrastructure company, is executing its first junk-bond issuance with a $3.5 billion offering to fund expansion of its flagship Helios data center project in Texas. The five-year notes are being marketed at approximately 9% yield with pricing expected on Thursday, July 24, 2026. Morgan Stanley and Goldman Sachs are leading the underwriting effort, signaling institutional-grade capital formation for the digital infrastructure sector.
The capital will be deployed toward the Helios data center campus located in Dickens County, Texas, which has received approval for 1.63 gigawatts of total power capacity. The project is anchored by a strategic anchor tenant agreement with CoreWeave, a generative AI infrastructure provider, which has committed 526 megawatts of critical IT load across three phases under 15-year leases. Galaxy Digital projects these leases will generate more than $1 billion in average annual revenue, providing substantial long-term revenue visibility for debt servicing and returns on invested capital.
Development progress on Helios is advancing on schedule. Phase I was completed earlier in 2026, delivering 133 megawatts of IT capacity to CoreWeave. Phase II data hall deliveries are projected for the first half of 2027, indicating near-term operational cash flow generation. The bond proceeds will be allocated to fund portions of the project capex and establish debt-service reserves, reducing refinancing risk for the issuer.
The timing reflects robust capital market demand for AI data center infrastructure. Data center developers have collectively raised approximately $28 billion in US junk-bond markets year-to-date for AI-specific infrastructure projects, demonstrating sustained institutional investor appetite for high-yield exposure to secular growth drivers in compute capacity. Galaxy Digital's successful execution of this inaugural debt offering positions the firm to accelerate its digital infrastructure strategy while leveraging long-duration tenant commitments to support covenant metrics and investor confidence.
The capital will be deployed toward the Helios data center campus located in Dickens County, Texas, which has received approval for 1.63 gigawatts of total power capacity. The project is anchored by a strategic anchor tenant agreement with CoreWeave, a generative AI infrastructure provider, which has committed 526 megawatts of critical IT load across three phases under 15-year leases. Galaxy Digital projects these leases will generate more than $1 billion in average annual revenue, providing substantial long-term revenue visibility for debt servicing and returns on invested capital.
Development progress on Helios is advancing on schedule. Phase I was completed earlier in 2026, delivering 133 megawatts of IT capacity to CoreWeave. Phase II data hall deliveries are projected for the first half of 2027, indicating near-term operational cash flow generation. The bond proceeds will be allocated to fund portions of the project capex and establish debt-service reserves, reducing refinancing risk for the issuer.
The timing reflects robust capital market demand for AI data center infrastructure. Data center developers have collectively raised approximately $28 billion in US junk-bond markets year-to-date for AI-specific infrastructure projects, demonstrating sustained institutional investor appetite for high-yield exposure to secular growth drivers in compute capacity. Galaxy Digital's successful execution of this inaugural debt offering positions the firm to accelerate its digital infrastructure strategy while leveraging long-duration tenant commitments to support covenant metrics and investor confidence.
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