Galaxy Digital Plans $3.5 Billion Junk Bond Sale to Fund AI Data Center Project

Galaxy Digital Inc. is moving to raise approximately $3.5 billion through its first-ever junk bond issuance, marking one of the largest debt offerings in the digital asset sector to date. According to company filings, the proceeds will be used to finance the Helios data center campus in Dickens County, West Texas, and to establish a debt service reserve fund. The bonds, with a five-year maturity, are structured so that the Galaxy subsidiary responsible for the issuance will repay 4% of the original principal annually starting 10 months after construction completion, as reported by Bloomberg on Wednesday.

Morgan Stanley and Goldman Sachs Group are leading the underwriting for the offering, with pricing expected on July 23. The move underscores the growing intersection of digital asset finance and artificial intelligence infrastructure, as demand for high-performance computing capacity continues to surge.

Earlier this month, Galaxy Digital announced that CoreWeave Inc. had agreed to lease computing resources at the facility under a 15-year contract, projected to generate over $1 billion in annual revenue. The first phase of the Helios campus was completed in early 2026, with the second phase scheduled to begin in 2027. This long-term agreement with CoreWeave, a cloud computing provider specializing in AI workloads, provides the revenue visibility needed to support such a large-scale debt issuance.

The bond sale follows a similar trend in the market. Last month, a subsidiary of Applied Digital Corp. raised $1.59 billion through a junk bond offering to expand computing resources for CoreWeave in North Dakota. Galaxy Digital, primarily known as a digital asset firm, has been aggressively diversifying into AI infrastructure in recent years, having previously raised capital through convertible note offerings. This latest financing strategy reflects the broader industry shift toward leveraging debt markets to fund capital-intensive data center projects driven by AI demand.

The successful execution of this bond could set a precedent for other companies seeking to finance large-scale AI data centers, particularly as traditional equity markets remain cautious. Industry analysts note that the 15-year lease with CoreWeave provides a stable cash flow stream, mitigating some of the risks typically associated with high-yield debt.