CoreWeave-Backed Data Center Plans $3.5 Billion Junk-Bond Sale

Galaxy Digital Inc. plans to raise about $3.5 billion from a debut junk-bond sale to fund a data center tied to CoreWeave Inc., extending AI financing into riskier corners of the US credit market. Proceeds will finance the Helios Data Center Campus project in Dickens County, West Texas, where CoreWeave has committed to lease computing capacity under 15-year contracts expected to generate over $1 billion of annual revenue. Morgan Stanley and Goldman Sachs Group Inc. are leading the offering, expected to price on July 23.

Bloomberg -- Galaxy Digital Inc. is planning to raise about $3.5 billion from a debut junk-bond sale to fund a data center tied to CoreWeave Inc., extending AI financing's push into the riskier corners of the US credit market. Most Read from Bloomberg - Apple to Launch 'Upgrade' Device Leasing Program With Klarna to Spur Sales https://www.bloomberg.com/news/articles/2026-07-21/apple-to-launch-upgrade-device-leasing-program-with-klarna-to-spur-sales?utm campaign=bn&utm medium=distro&utm source=yahooUS - Trump Extends Pardons to Companies, Echoing a 17th Century King https://www.bloomberg.com/news/features/2026-07-21/trump-s-corporate-pardon-power-echoes-a-17th-century-english-king?utm campaign=bn&utm medium=distro&utm source=yahooUS - SpaceX Set to Unlock $116 Billion in Shares After IPO Restrictions Lift https://www.bloomberg.com/news/articles/2026-07-21/spacex-s-great-unlocking-begins-with-116-billion-share-release?utm campaign=bn&utm medium=distro&utm source=yahooUS - Kremlin Hardens Demands on Occupied Land in Ukraine, Blaming US https://www.bloomberg.com/news/articles/2026-07-22/kremlin-hardens-demands-on-occupied-land-in-ukraine-blaming-us?utm campaign=bn&utm medium=distro&utm source=yahooUS Proceeds will finance a portion of the company's Helios Data Center Campus project in Dickens County, West Texas, and fund debt service reserves, Galaxy Digital said in a filing. Under the deal's terms, the Galaxy unit selling the five-year notes will repay 4% of the original principal annually, beginning 10 months after completion of construction, according to a person familiar with the matter. Morgan Stanley and Goldman Sachs Group Inc. are leading the offering, which is expected to price on July 23, the person said, asking not to be identified because they aren't authorized to speak publicly. CoreWeave has committed to lease computing capacity at the facility under 15-year contracts expected to generate more than $1 billion of annual revenue, according to a separate Galaxy Digital statement earlier this month. The first phase of the project was completed earlier this year. The next phase is expected to start in 2027. Data center developers have raised about $28 billion in the US junk-bond market this year to finance specific artificial intelligence infrastructure projects, according to Bloomberg-compiled data. In the latest such transaction, an Applied Digital Corp. subsidiary last month raised $1.59 billion in the junk-bond market to fund additional computing capacity for CoreWeave in North Dakota. Galaxy Digital, a digital assets firm that has expanded into AI infrastructure, has previously raised capital through convertible note offerings. Most Read from Bloomberg Businessweek - Van Leeuwen's Path From a Single Ice Cream Truck to a Dessert Giant https://www.bloomberg.com/news/features/2026-07-21/inside-van-leeuwen-s-growth-from-single-truck-to-ice-cream-giant?utm campaign=bw&utm medium=distro&utm source=yahooUS - How China's 'Temu Range Rover' Became Britain's Top-Selling Car https://www.bloomberg.com/news/articles/2026-07-16/chery-s-temu-range-rover-highlights-china-s-ascent-in-uk-car-market?utm campaign=bw&utm medium=distro&utm source=yahooUS - The Bitcoin Slump Is Crushing Companies That Stockpiled Tokens https://www.bloomberg.com/news/articles/2026-07-22/bitcoin-s-price-plunge-crushes-companies-that-stockpiled-tokens?utm campaign=bw&utm medium=distro&utm source=yahooUS - Credit Card Holders Are Using 'Friendly Fraud' to Get Back at Retailers https://www.bloomberg.com/news/articles/2026-07-13/credit-card-holders-are-using-friendly-fraud-to-get-back-at-retailers?utm campaign=bw&utm medium=distro&utm source=yahooUS ©2026 Bloomberg L.P.