Galaxy Digital Plans $3.5 Billion Junk Bond Issuance to Finance CoreWeave Data Centers
Taylor Wilson
A Galaxy Digital subsidiary plans to sell roughly $3.5 billion in high-yield bonds to finance its Helios data-center campus in Texas — the latest sign that AI infrastructure is turning the U.S. junk-bond market into its primary funding engine.
What does the deal look like?
The issuer is a Galaxy Digital subsidiary. The project is the Helios data-center campus in Dickens County, Texas.
The five-year notes will amortize at 4% of original principal per year, starting ten months after construction is complete.
Morgan Stanley and Goldman Sachs are lead underwriters. Pricing is expected on July 23.
Who backstops the cash flow?
CoreWeave has committed to a 15-year lease for the facility's computing capacity.
This means → the bonds are not a bet on open-market demand; they are backed by a locked-in, long-term contract with a single anchor tenant.
The contract is projected to generate more than $1 billion in annual revenue. Phase one is already complete; phase two is expected to begin in 2027.
Why is Galaxy Digital going this route?
Galaxy Digital is a digital-assets firm (primarily crypto-related) that has expanded into AI infrastructure in recent years.
It previously raised capital through convertible notes — a type of debt that can later convert into equity. This is its first junk-bond issuance.
This reflects a broader pattern: AI infrastructure's capital appetite has outgrown traditional funding tools, pushing issuers into the high-yield market for larger deal sizes.
Is credit risk piling up across the market?
According to Bloomberg data, data-center developers have raised roughly $28 billion in the U.S. junk-bond market so far this year.
Last month, an Applied Digital subsidiary completed a $1.59 billion junk-bond sale — also to fund a CoreWeave computing project, in North Dakota.
In plain terms = CoreWeave alone has anchored multi-billion-dollar high-yield deals across several states. AI infrastructure's reliance on the junk-bond market is deepening fast, and the associated credit-risk exposure is still accumulating.
Content is for reference only, not financial advice.