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

Galaxy Digital has launched a $3.5 billion high-yield bond sale to help finance the expansion of its Helios data center campus in West Texas, according to a Bloomberg report.

The digital assets and AI infrastructure company plans to use proceeds from its first junk bond offering to fund part of the Helios Data Center Campus in Dickens County, about 60 miles east of Lubbock. The offering also covers debt service reserves tied to the project.

The transaction is expected to price on July 23, a person familiar with the matter told Bloomberg. Morgan Stanley, which carries an Alpha Score of 60/100 (Moderate, Financials sector), and Goldman Sachs are leading the sale. The source said the offering consists of five-year notes issued by a Galaxy subsidiary. Under the proposed structure, the issuing entity will begin repaying 4% of the original principal each year starting 10 months after construction is completed.

Infrastructure developers have raised about $28 billion through U.S. junk bond offerings this year to finance AI-focused data center construction, Bloomberg data shows. Last month, an Applied Digital subsidiary raised roughly $1.59 billion to expand computing capacity for CoreWeave at a North Dakota facility. Galaxy had previously relied on convertible note offerings for capital.

Earlier this month, Galaxy said CoreWeave had signed 15-year agreements to lease computing capacity at the Helios campus. Those contracts are expected to generate more than $1 billion in annual revenue once operational, the company said. The first phase of the Helios project has already been completed. Construction on the next phase is expected to begin in 2027. The campus has regulatory approval for up to 1.6 gigawatts of power dedicated to AI and high-performance computing.

Galaxy has also tied the project to regional partnerships. Last week, the company signed a 15-year agreement with Texas Tech University to rename the school's football venue Galaxy Stadium beginning with the 2026 season. The agreement made Galaxy Texas Tech Athletics' official digital assets and data center partner. Both parties said they plan to collaborate on artificial intelligence initiatives, workforce training programs and opportunities involving student-athletes' names, images and likenesses. Financial terms weren't disclosed.

Even as Galaxy increases spending on AI infrastructure, it has continued expanding its digital asset business. Earlier this week, the company introduced a $5 million Bitcoin Quantum Readiness Initiative to support developers working on technologies designed to prepare the Bitcoin network for future quantum computing risks. The grant program will fund research into quantum-resistant signature schemes, wallet migration tools and independent security audits. Galaxy cited research from CryptoQuant estimating that about 6.9 million Bitcoin, worth roughly $461 billion at current prices, could become exposed if future quantum computers become capable of breaking Bitcoin's existing cryptographic protections. The company acknowledged that such machines aren't expected to pose an immediate threat.

In May, Galaxy secured both a BitLicense and a Money Transmission License from the New York State Department of Financial Services through its subsidiary GalaxyOne Prime NY, allowing it to provide regulated digital asset trading and custody services to institutional clients in New York. Earlier in 2026, Galaxy also announced plans to launch a $100 million hedge fund focused on cryptocurrency tokens alongside financial services companies expected to benefit from digital asset adoption and regulatory developments.

The first phase of the Helios campus has already been completed. Construction on the next phase is expected to begin in 2027.