Galaxy Digital is pricing a $3.5 billion high-yield bond offering on July 23, with Morgan Stanley and Goldman Sachs running the books. The proceeds will go toward expanding the Helios Data Center Campus in Dickens County, West Texas, and topping up debt service reserves tied to the project.

The deal is structured as five-year notes issued through a Galaxy subsidiary. Repayment kicks in gradually: the issuer will start paying back 4% of original principal per year beginning ten months after construction wraps, according to a source cited by Bloomberg who asked not to be named because the details haven't been made public.

The anchor for the whole financing is a pair of 15-year lease agreements CoreWeave signed earlier this month to take computing capacity at Helios. Galaxy says those contracts should generate more than $1 billion in annual revenue once the campus is running at scale. Phase one is already complete; work on the next phase is scheduled to start in 2027.

A campus built for scale

Helios sits about 60 miles east of Lubbock and holds regulatory approval for up to 1.6 gigawatts of power capacity dedicated to AI and high-performance computing. That's a meaningful footprint even by the standards of the current data center buildout cycle.

Galaxy is far from alone in tapping the junk bond market for AI infrastructure. Bloomberg figures show developers have already pulled roughly $28 billion from U.S. high-yield offerings this year to fund data center construction. Last month, an Applied Digital subsidiary raised about $1.59 billion through the same market to expand CoreWeave capacity at a facility in North Dakota.

For Galaxy specifically, the move marks a shift in how the company raises capital. Before this offering, it had leaned mostly on convertible notes. Going straight to the high-yield market, backed by long-term CoreWeave cash flows, puts the Helios project in a different category: less speculative bet, more infrastructure bond deal.

This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any asset.