Galaxy Digital to Raise $3.5 Billion in Junk Bond Sale for CoreWeave AI Data Center

Galaxy Digital Inc. plans to raise approximately $3.5 billion in its first-ever junk-bond offering to finance a major data center for artificial intelligence cloud provider CoreWeave Inc., according to a company filing.

The Offering

The financing will consist of five-year notes, with Morgan Stanley and Goldman Sachs Group Inc. managing the sale, Bloomberg reported. The offering is scheduled to be priced on July 23. Proceeds are designated for the development of the company's Helios Data Center Campus in West Texas and to establish debt service reserves.

Under the terms, the Galaxy unit issuing the debt will repay 4% of the original principal annually. These repayments are set to begin 10 months after the construction of the facility is completed.

AI Infrastructure Partnership

The capital raise underscores Galaxy's significant push into the booming AI infrastructure sector. The project is anchored by a crucial agreement with CoreWeave, which has committed to leasing computing capacity at the Helios facility.

Key details of the partnership include:

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• 15-year contracts for leasing capacity.
• Projected annual revenue of over $1 billion from the agreements, as stated by Galaxy Digital earlier this month.

Construction on the project is already underway, with the first phase completed earlier in 2026 and the second phase scheduled to commence in 2027.

Market Context

This move into the high-yield debt market marks a strategic shift for Galaxy Digital, a firm primarily known for its focus on digital assets that has previously raised capital through convertible notes. The transaction highlights a growing trend of using debt markets to fund the capital-intensive build-out of AI infrastructure.

The deal follows a similar financing last month, when a subsidiary of Applied Digital Corp. raised $1.59 billion in the junk-bond market to fund additional computing capacity for CoreWeave. This suggests strong investor appetite for debt instruments tied to the growth of artificial intelligence.