Galaxy Digital targets $3.5B junk bond sale to expand Texas AI data center

Galaxy Digital has launched a planned $3.5 billion high-yield bond sale to help finance the expansion of its Helios data center campus in West Texas. Summary Galaxy Digital is raising about $3.5 billion through its first junk bond sale to expand its Helios AI data center campus in Texas. The financing is backed by long term CoreWeave contracts that Galaxy expects to generate more than $1 billion in annual revenue. The bond sale adds to Galaxy’s growing investments in AI infrastructure alongside its digital asset and institutional businesses. According to a Bloomberg report, the digital assets and AI infrastructure company intends to use the proceeds from its first junk bond offering to finance part of the Helios Data Center Campus in Dickens County, Texas, while also funding debt service reserves tied to the project. The planned issuance adds Galaxy to a growing list of infrastructure developers using the U.S. high-yield debt market to fund large artificial intelligence projects. Bloomberg data shows developers have already raised about $28 billion through U.S. junk bond offerings this year to finance AI-focused data center construction. The transaction is expected to price on July...