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Galaxy Digital Inc. Announces Pricing of $3.507 Billion of Senior Secured Notes

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Galaxy Digital (NASDAQ: GLXY) announced that indirect subsidiary Galaxy Helios Data Centers II LLC has priced a $3.507 billion private offering of 9.875% senior secured notes due 2031. Closing is expected on July 28, 2026, subject to market and other conditions.

According to Galaxy, net proceeds are intended to fund part of a Dickens County, Texas data center project comprising two buildings with eight data halls, totaling 400 MW of utility capacity and 260 MW of critical IT capacity, and to fund debt service reserves.

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Positive

  • $3.507 billion senior secured notes priced, targeting long-term project financing
  • Proceeds earmarked for 400 MW utility and 260 MW IT capacity build-out in Texas
  • Notes mature in 2031 with 4% annual amortization, adding structured repayment profile

Negative

  • Notes carry a relatively high 9.875% annual cash interest cost
  • Debt is senior secured with first-priority liens on substantially all Issuer and Guarantor assets
  • Offering completion remains subject to market and other conditions, with no assurance of closing

News Explained

If completed, Galaxy’s subsidiary would add 9.875% secured debt due in 2031, with cash interest and later amortization.

The notes have been priced, but the offering remains subject to market and other conditions and is expected to close on July 28, 2026; if issued, the issuer would carry $3.507 billion of senior secured debt bearing 9.875% cash interest and maturing on August 1, 2031.

The notes would be guaranteed by wholly owned Galaxy Helios II LLC and secured by first-priority liens on substantially all assets of the issuer and guarantor, plus the issuer’s equity interests held by its direct parent.

On the supplied quarterly basis, the offering gross amount equals 3786.8 days of the latest reported operating cash use, while Galaxy’s $910.691 million of cash and equivalents equals 983.4 days on that same basis.

If completed, the first semiannual cash-interest payment is scheduled for February 1, 2027; amortization is also semiannual, with the first payment occurring at least ten months after the Project’s completion.

Sources and calculations
  • Offering gross vs quarterly operating cash outflow, in days of cash use $3,507,000,000 / ($83,349,000 / 90) = [object Object]
  • Cash and equivalents vs quarterly operating cash outflow, in days of cash use $910,691,000 / ($83,349,000 / 90) = [object Object]

Market reaction after 2031 senior notes offering: GLXY -6.74% in the Jul 24 session

-6.74%
16 alerts
-6.74% Session close to close
-5.0% Trough in 31 hr 54 min
$4.87B Market Cap
0.7x Rel. Volume

In the Jul 24 session, GLXY declined 6.74%, reflecting a notable negative market reaction. Argus tracked a trough of -5.0% from its starting point during tracking. Our momentum scanner triggered 16 alerts that day, indicating notable trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved -6.7% in the session following this news. News ID 1073687 recorded a -5.34% reaction...
Analysis

The stock moved -6.7% in the session following this news. News ID 1073687 recorded a -5.34% reaction in the crypto-tagged history. The offering adds secured debt, while Galaxy's active S-3ASR shelf registers up to $500,000,000 of common stock.

Key Figures

Senior secured notes: $3.507 billion Interest rate: 9.875% per annum Expected closing date: July 28, 2026 +5 more
8 metrics
Senior secured notes $3.507 billion Private offering due 2031
Interest rate 9.875% per annum Notes payable semi-annually in cash
Expected closing date July 28, 2026 Subject to market and other conditions
Utility capacity 400 megawatts Two buildings containing eight data halls
Critical IT capacity 260 MW Combined capacity of the Project
Property size 260 acres Dickens County, Texas property
Maturity date August 1, 2031 Senior secured notes
Annual amortization 4.00% per annum Of original principal amount, subject to adjustment

Previous Crypto Reports

5 past events · Latest: Jul 15 (Positive)
Same Type Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Jul 15 Warehouse lending facility Positive +1.5% Expanded institutional lending through a senior secured warehouse facility with Grove.
Jun 23 Strategic platform investment Positive -5.3% Investment in Digital Prime Technologies supported Tokenet's institutional lending platform expansion.
Jun 05 Referral arrangement Positive -11.5% Morgan Stanley referral capability broadened access to Galaxy's crypto lending services.
May 05 Onchain liquidity fund Positive +3.9% State Street and Galaxy launched an onchain cash-management fund for institutional users.
Mar 25 Ethereum insurance launch Positive +0.1% Soter Insure launched Ethereum-denominated slashing insurance developed with Galaxy Digital.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Crypto-tagged events averaged a -2.26% move, with three aligned positive reactions and two divergences.

Key Terms

senior secured notes, debt service reserves, first-priority liens, rule 144a, +1 more
5 terms
senior secured notes financial
"priced a $3.507 billion private offering of 9.875% senior secured notes"
Senior secured notes are loans a company sells to investors that are backed by specific assets and given first priority for repayment if the company defaults. Because they have a claim on collateral and are paid before other debts, they usually offer lower risk and correspondingly lower interest than unsecured debt; investors use them to judge how safe repayment and recovery of principal might be, like holding a mortgage instead of an unsecured credit card balance.
debt service reserves financial
"and to fund debt service reserves"
A debt service reserve is a pool of cash or highly liquid assets set aside to cover upcoming interest and principal payments on a loan or bond if regular cash flow falls short. Lenders or bond terms often require it as a backstop, like an emergency fund that can be tapped to make scheduled payments. Investors watch the reserve because its size and accessibility affect the issuer’s short-term credit risk and likelihood of meeting debt obligations.
first-priority liens financial
"will be secured by first-priority liens on"
A first-priority lien is a legal claim that gives a lender or creditor the first right to specific assets if a borrower cannot pay, meaning they are first in line to be repaid from those assets. For investors, that higher claim lowers the lender’s risk and usually affects interest rates and recovery expectations—similar to having the front seat in a queue to get paid back if the borrower defaults.
rule 144a regulatory
"qualified institutional buyers under Rule 144A under the Securities Act"
Rule 144A is a regulation that makes it easier for companies to sell private bonds to large investors without going through all the usual rules that apply to public sales. It matters because it helps companies raise money more quickly and privately, often attracting big investors looking for special deals.
regulation s regulatory
"non-U.S. persons in reliance on Regulation S under the Securities Act"
Regulation S is a set of rules that allows companies to sell securities (like shares or bonds) to investors outside the United States without having to follow all U.S. securities laws. It matters because it makes it easier for companies to raise money from international investors while still complying with U.S. regulations.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, July 23, 2026 /PRNewswire/ -- Galaxy Digital Inc. (NASDAQ: GLXY) ("Galaxy" or the "Company"), a global leader in digital assets and data center infrastructure, today announced that its indirect wholly owned subsidiary, Galaxy Helios Data Centers II LLC (the "Issuer"), has priced a $3.507 billion private offering (the "Offering") of 9.875% senior secured notes due 2031 (the "Notes"). The Offering is expected to close on July 28, 2026, subject to market and other conditions.

Galaxy Digital Inc. Logo

The Issuer intends to use the net proceeds from the Offering to finance a portion of the development and construction of two buildings containing eight data halls with a combined total of 400 megawatts ("MW") of utility capacity and 260 MW of critical IT capacity (the "Project") to be built on an approximately 260-acre property in Dickens County, Texas and to fund debt service reserves.

The Notes will bear interest at a rate of 9.875% per annum payable semi-annually in cash in arrears on February 1 and August 1 of each year, beginning on February 1, 2027 and will mature on August 1, 2031. The Notes will amortize at a rate of 4.00% per annum of the original principal amount subject to adjustment, with amortization payments payable semi-annually with the first payment date to occur at least ten months after the completion of the Project.

The Notes will be fully and unconditionally guaranteed by Galaxy Helios II LLC, a wholly owned direct subsidiary of the Issuer (the "Guarantor"), and will constitute the senior secured obligations of the Issuer and the Guarantor. The Notes and related note guarantee will be secured by first-priority liens on (i) substantially all assets of the Issuer and the Guarantor, other than certain excluded property and (ii) all equity interests of the Issuer held by the direct parent company of the Issuer.

The Offering is subject to market and other conditions, and there can be no assurance as to whether, when or on what terms the Offering may be completed.

The Notes have not been registered under the Securities Act or the securities laws of any other jurisdiction, and the Notes may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act and any applicable state securities laws. The Notes will be offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A under the Securities Act and outside the United States to non-U.S. persons in reliance on Regulation S under the Securities Act.

This press release shall not constitute an offer to sell, or a solicitation of an offer to buy the Notes, nor shall there be any sale of the Notes in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Galaxy

Galaxy Digital Inc. (Nasdaq: GLXY) is a global leader in digital assets and data center infrastructure, delivering solutions that accelerate progress in finance and artificial intelligence. Our digital assets platform offers institutional access to trading, advisory, asset management, staking, self-custody, and tokenization technology. In addition, we develop and operate cutting-edge data center infrastructure to power AI and HPC workloads. Our 1.63 GW Helios campus in Texas positions Galaxy among the largest and fastest-growing data center developers in North America. The Company is headquartered in New York City, with offices across North America, Europe, the Middle East, and Asia.

Forward Looking Statements

This press release includes forward-looking statements, including statements relating to the completion, size and timing of the Offering, the terms of the Notes and the intended use of proceeds. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements represent the Company's current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Among those risks and uncertainties are market conditions, including market interest rates, the satisfaction of the closing conditions related to the Offering and risks relating to the Company's business, including those described in periodic reports that the Company files from time to time with the SEC. The Issuer may not consummate the proposed Offering described in this press release and, if the proposed Offering is consummated, cannot provide any assurances regarding the final terms of the Offering or the Notes or its ability to effectively apply the net proceeds as described above. The forward-looking statements included in this press release speak only as of the date of this press release, and the Company does not undertake to update the statements included in this press release for subsequent developments, whether as a result of new information, future events, or otherwise, except as may be required by law.

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SOURCE Galaxy Digital Inc.

FAQ

What did Galaxy Digital (NASDAQ: GLXY) announce about its $3.507 billion notes on July 23, 2026?

Galaxy Digital announced pricing of a $3.507 billion private offering of 9.875% senior secured notes due 2031. According to Galaxy, the notes are being issued by subsidiary Galaxy Helios Data Centers II LLC, with closing expected on July 28, 2026, subject to conditions.

What is the interest rate and maturity of Galaxy Digital’s new GLXY senior secured notes?

The new notes will bear interest at 9.875% per annum and mature on August 1, 2031. According to Galaxy, interest is payable in cash semi-annually on February 1 and August 1, beginning February 1, 2027, with 4% annual principal amortization.

How will Galaxy Digital (GLXY) use the $3.507 billion senior secured notes proceeds?

Galaxy plans to use net proceeds to help finance a large data center project and fund debt service reserves. According to Galaxy, the project includes two buildings, eight data halls, 400 MW of utility capacity and 260 MW of critical IT capacity in Texas.

Who guarantees Galaxy Digital’s 9.875% senior secured notes and what secures them?

The notes are fully and unconditionally guaranteed by Galaxy Helios II LLC, a direct subsidiary of the Issuer. According to Galaxy, they are secured by first-priority liens on substantially all Issuer and Guarantor assets and the Issuer’s equity interests, excluding certain property.

Are Galaxy Digital’s (GLXY) new senior secured notes available to retail investors?

The notes are not being offered to general retail investors and are unregistered under the Securities Act. According to Galaxy, they will be sold only to qualified institutional buyers under Rule 144A and to certain non-U.S. persons under Regulation S.

What risks did Galaxy Digital highlight regarding completion of the $3.507 billion notes offering?

Galaxy stated the offering is subject to market and other conditions and may not be completed as planned. According to Galaxy, there is no assurance whether, when or on what terms the offering will close, which could affect project financing timing.