Galaxy Digital Inc. Announces Pricing of $3.507 Billion of Senior Secured Notes

Galaxy Digital Inc. has announced the pricing of a private offering of senior secured notes amounting to $3.507 billion, aimed at financing the development of data center infrastructure. The offering, which features a coupon rate of 9.875% and is set to mature in 2031, is expected to close on July 28, 2026. The proceeds will primarily be allocated for the construction of two data center buildings in Dickens County, Texas, which will collectively support 400 megawatts (MW) of utility capacity and 260 MW of critical IT capacity.

Galaxy Helios Data Centers II LLC, an indirect wholly owned subsidiary of Galaxy Digital, will issue the notes. The financing structure includes semi-annual interest payments starting February 1, 2027, and an amortization schedule of 4.00% per annum. The notes will be secured by first-priority liens on substantially all assets of both the Issuer and its guarantor, Galaxy Helios II LLC, ensuring a strong collateral position for investors.

As a prominent player in the digital assets and data center infrastructure sector, Galaxy Digital is strategically positioning itself to capitalize on the increasing demand for data processing and storage capabilities, particularly in relation to artificial intelligence and high-performance computing workloads. The company's Helios campus in Texas, which boasts a capacity of 1.63 gigawatts, is among the largest data center developments in North America, underscoring its commitment to expanding its footprint in this rapidly evolving market.

The decision to issue senior secured notes reflects a broader trend in the financial markets, where companies are increasingly leveraging debt financing to fund capital-intensive projects. With the growing reliance on digital infrastructure, particularly in the wake of the pandemic, the demand for data centers is expected to remain robust. This offering not only provides Galaxy Digital with the necessary capital to enhance its operational capabilities but also positions the firm favorably within a competitive landscape that is witnessing significant investment activity.

In conclusion, the successful execution of this private offering could have far-reaching implications for Galaxy Digital and the data center sector as a whole. As organizations continue to prioritize digital transformation and cloud services, the need for scalable and efficient data center solutions will likely drive further investment. The strategic focus on Texas as a development hub may also attract additional players to the region, enhancing its status as a key market for data infrastructure development.