Galaxy Digital Inc. Announces $3.507B Senior Secured Notes Offering

What Happened Galaxy Digital Inc. (through indirect subsidiary Galaxy Helios Data Centers II LLC) announced on July 28, 2026 that it completed a private offering of $3,507,000,000 in 9.875% Senior Secured Notes due August 1, 2031. The Notes were sold under a July 23, 2026 purchase agreement (representative: Morgan Stanley & Co. LLC) to qualified institutional buyers under Rule 144A and to non‑U.S. persons under Regulation S. Proceeds are intended to fund part of development and construction of two data‑center buildings (eight data halls; combined 400 MW utility capacity / 260 MW critical IT capacity) on ~260 acres in Dickens County, Texas, and to fund debt service reserves. The Bank of New York Mellon is trustee and collateral agent, and Galaxy LP provided an uncapped completion guarantee for the Project.

Key Details

• Aggregate principal: $3,507,000,000; issued at 99.500% of principal.
• Interest & term: 9.875% annual interest, paid semi‑annually (Feb 1 & Aug 1), first interest payment Feb 1, 2027; maturity Aug 1, 2031.
• Amortization & redemptions: Principal amortizes semi‑annually per the indenture; various redemption mechanics include make‑whole before Aug 1, 2028, and change‑of‑control and asset‑sale repurchase provisions (101% / 100% repurchase prices as specified).
• Security & guarantees: Notes are senior secured obligations of the Issuer; Galaxy Digital Holdings LP (Galaxy LP) provided a customary, uncapped completion guarantee for the Project.

Why It Matters This filing creates a new, material financed obligation for Galaxy Digital’s consolidated group: $3.507 billion of senior secured debt that will fund a major data‑center buildout. For investors, that means increased leverage and fixed interest expense at a relatively high coupon (9.875%), but also dedicated funding to expand the company’s data‑center capacity—potentially supporting future revenue growth from tenants. The notes include customary covenants and security, and Galaxy LP’s completion guarantee shifts project completion risk onto the parent, which is important to factor into credit and liquidity considerations.