Galaxy Digital plans first $3.5 billion high-yield bond sale for CoreWeave-linked data centers

Galaxy Digital said its Helios data center subsidiary has priced a $3.507 billion private offering of 9.875% senior secured notes due 2031, advancing the company's first major high-yield bond financing for its Texas AI infrastructure expansion. The offering, expected to close on July 28, would fund part of the development and construction of two buildings with eight data halls in Dickens County, Texas, providing 400 megawatts of utility capacity and 260 megawatts of critical IT capacity, along with debt service reserves. The notes will mature on Aug. 1, 2031, pay interest semi-annually starting Feb. 1, 2027, and amortize at 4% per year of the original principal amount, with payments beginning at least 10 months after the project is completed. Galaxy said the debt will be issued by Galaxy Helios Data Centers II LLC and fully guaranteed by Galaxy Helios II LLC, with first-priority liens over substantially all assets of the issuer and guarantor and over the issuer's equity interests held by its direct parent. The financing builds on Galaxy's broader push to reposition itself from a crypto-focused firm into a long-term provider of data center infrastructure for artificial intelligence and high-performance computing. Earlier reporting in the existing record said CoreWeave, the main tenant at Helios, signed a 15-year lease agreement, with average annual revenue from lease agreements covering phases one through three projected to exceed $1 billion. Galaxy has also said it completed the first phase of Helios and began supplying 133 megawatts of power to CoreWeave, while a 260-megawatt second-phase facility is being built in stages starting in the first half of 2027.