CoreWeave is the anchor tenant on a 15-year lease at Galaxy Digital's Helios campus in West Texas, backing a $3.5 billion junk bond sale. Goldman Sachs and Morgan Stanley are leading.
Galaxy Digital is seeking $3.5 billion through a sale of senior secured notes maturing in 2031, the company said in an offering document. The proceeds will fund the second phase of its Helios Data Center Campus in Dickens County, West Texas.
The notes are structured as a Rule 144A/Reg S private placement. Goldman Sachs and Morgan Stanley are acting as joint bookrunners. Pricing is set for July 23, Galaxy said.
The expansion adds two structures with 400 MW of total utility capacity and 260 MW of critical IT load, according to the documents. CoreWeave has signed 15-year lease commitments for the entire facility. The agreements are projected to generate annual revenue above $1 billion for Galaxy.
Galaxy's offering materials project an initial gross yield on cost of roughly 13.7%. Rent payments start in Q2 2027. The filing forecasts net operating income margins around 90%. The issuer will amortize 4% of the principal each year, starting 10 months after construction completion.
The first phase of Helios went live in early 2026. Construction on the second phase is set to begin in 2027. Galaxy has historically funded its expansion through convertible notes. The $3.5 billion bond sale marks a shift to straight high-yield debt, according to the offering documents.
Galaxy is the latest infrastructure operator to tap the high-yield market for AI buildouts, the filing shows. A subsidiary of Applied Digital Corp. raised $1.59 billion last month for a CoreWeave facility in North Dakota. The bonds are typically secured by long-term lease commitments from tenants such as CoreWeave, the documents show.
The offering documents project cumulative post-debt service cash flows of roughly $3.8 billion by 2043, based on the CoreWeave lease agreements. Galaxy said the completion of the offering on the stated terms cannot be guaranteed.
Galaxy shares fell 0.24% on the session. CoreWeave shares rose 5.69%. CoreWeave carries a Weak Alpha Score of 19/100 at AlphaScala. Pricing is scheduled for July 23.
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