Galaxy Digital Seeks $3.5 Billion Junk-Bond Sale to Fund US AI Data Center

Galaxy Digital is seeking to raise $3.5 billion through a junk-bond sale to expand its artificial intelligence data-center business in the US.

Bloomberg reported on July 22 that the US crypto financial firm recently began marketing speculative-grade bonds to help finance the Helios data center in Texas.

Morgan Stanley and Goldman Sachs are leading the offering, which is scheduled to be priced on July 23. Galaxy Digital has pitched investors a yield of about 9%.

The proceeds will be used to cover part of the Helios development cost and to build reserves for future interest and principal payments. The Galaxy Digital subsidiary issuing the bonds plans to repay 4% of the principal on the five-year notes each year. The first principal payment will begin 10 months after construction of the data center is completed.

The main tenant at the Helios data center is AI cloud company CoreWeave, which agreed to lease computing capacity at the facility under a 15-year contract. Average annual revenue from lease agreements covering phases one through three is projected to exceed $1 billion.

Earlier this month, Galaxy Digital completed the first phase of the Helios project and began supplying 133 megawatts of power to CoreWeave. A 260-megawatt second-phase facility is under development and will be completed in stages starting in the first half of 2027.

Galaxy Digital is expanding beyond its crypto-focused business into AI infrastructure. The company is seeking to reposition itself as an infrastructure provider that leases data centers to AI companies on a long-term basis.