Galaxy Digital prices $3.5 billion notes at 9.875% for data centers

Galaxy Digital Inc. raised $3.507 billion through a private offering of 9.875% senior secured notes to finance two data center buildings in Texas, the company said Wednesday.

The notes, issued by indirect subsidiary Galaxy Helios Data Centers II LLC, will mature Aug. 1, 2031, and carry a 9.875% coupon payable semi-annually. They amortize at 4% of the original principal amount per year, with the first amortization payment due at least 10 months after project completion.

Proceeds will fund the development of two buildings containing eight data halls with a combined 400 megawatts of utility capacity and 260 MW of critical IT capacity on a 260-acre site in Dickens County, Texas. The offering is expected to close July 28, subject to market conditions.

The 9.875% coupon reflects the capital-intensive nature of AI and high-performance computing infrastructure, where developers are racing to secure power and land. Galaxy's broader 1.63 GW Helios campus positions the company among the largest data center developers in North America, competing with firms such as Digital Realty Trust Inc. and Equinix Inc. for institutional capital.

The notes are secured by first-priority liens on substantially all assets of the issuer and guarantor Galaxy Helios II LLC, as well as equity interests held by the direct parent. They are being offered to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S, and have not been registered under the Securities Act.

Galaxy Digital, headquartered in New York, operates across digital assets trading, advisory, asset management, staking, self-custody, and tokenization, in addition to its data center infrastructure business. The company trades on Nasdaq under the ticker GLXY.

This article is for informational purposes only and does not constitute investment advice.