Galaxy Digital has launched a planned $3.5 billion high-yield bond sale to finance the expansion of its Helios data center campus in West Texas.
The digital assets and AI infrastructure company plans to use proceeds from its first junk bond offering to finance part of its Helios data center campus in Dickens County, Texas, while also funding debt service reserves related to the project, Bloomberg reports.
The planned issuance will join Galaxy in the growing list of infrastructure developers tapping the U.S. high-yield bond market to fund large-scale artificial intelligence projects. Developers have already raised about $28 billion this year through U.S. junk bond issuances to fund construction of AI-focused data centers, according to Bloomberg data.
The deal is expected to be priced on July 23, according to people familiar with the matter cited by Bloomberg. Morgan Stanley and Goldman Sachs are leading the sale, which consists of five-year notes issued by Galaxy’s subsidiaries, the people said.
Under the proposed structure, the issuer would begin repaying 4% of the principal annually starting 10 months after construction is completed, said the person, who requested anonymity because the information is private.
CoreWeave contract supports long-term expansion
Earlier this month, Galaxy announced that Coreweave had signed a 15-year agreement to lease computing power at the Helios campus. Once operational, these contracts are expected to generate more than $1 billion in annual revenue, according to the company’s previous announcement.
The company also said that the first phase of the Helios project has already been completed. Construction on the next phase is scheduled to begin in 2027 as Galaxy continues to expand its campus for artificial intelligence and high-performance computing workloads.
The Helios campus, located in Dickens County, about 90 miles east of Lubbock, has been approved by regulators to provide up to 1.6 gigawatts of power dedicated to AI and high-performance computing, according to figures previously released by Galaxy.
The funding plan follows another large AI infrastructure deal completed last month. An Applied Digital subsidiary has raised about $1.59 billion in the U.S. junk bond market to expand CoreWeave’s computing capacity at a facility in North Dakota, according to Bloomberg data.
Prior to pursuing its current bond issuance, Galaxy primarily relied on convertible bond issuances to finance its operations.
AI infrastructure will become a big part of Galaxy’s business
Originally known for its digital asset business, Galaxy has steadily increased its investments in artificial intelligence infrastructure during 2026, alongside its cryptocurrency business.
As demand for AI computing power continues to grow, the Helios campus is one of the company’s largest long-term infrastructure projects. In partnership with CoreWeave, the site is among several facilities being developed to support large-scale AI training and cloud computing services.
Galaxy also connected this project with regional partnerships in West Texas. Last week, the company signed a 15-year deal with Texas Tech University to rename the school’s football venue Galaxy Stadium starting with the 2026 season.
The deal made the company the official digital asset and data center partner of Texas Tech Athletics, according to a Galaxy announcement at the time. In addition to stadium naming rights, the two sides said they also plan to collaborate on artificial intelligence initiatives, talent development programs, and student-athlete name, image and likeness opportunities, although financial terms were not disclosed.
This university partnership will connect Galaxy’s existing data center operations in Dickens County with one of the area’s most high-profile athletic programs, further strengthening its presence in West Texas as the Helios campus continues to develop.
Virtual currency business continues to expand in parallel with AI
Galaxy continues to expand other parts of its digital asset business even as it increases spending on AI infrastructure.
Earlier this week, the company introduced the $5 million Bitcoin Quantum Ready Initiative to support developers working on technology to prepare the Bitcoin network for the risks of future quantum computing.
According to Galaxy, the grant program will fund research into quantum-resistant signature schemes, wallet migration tools, and independent security audits. The company also said it hopes universities, companies and other institutions will contribute funding and technical expertise to accelerate post-quantum cryptography efforts.
Galaxy cited research from CryptoQuant that estimates that about 6.9 million Bitcoins, worth about $461 billion at current prices, could be leaked if future quantum computers are able to break through Bitcoin’s existing cryptographic protections. The company acknowledged that such machines are not expected to pose an immediate threat, but argued that preparing the ecosystem will require years of coordination between developers, exchanges, wallet providers, and infrastructure operators.
The company also expanded its regulated financial services business this year. In May, Galaxy, through its subsidiary GalaxyOne Prime NY, secured both a BitLicense and a money transfer license from the New York State Department of Financial Services, allowing it to provide regulated digital asset trading and custody services to institutional clients in New York.
Galaxy also announced plans to launch a $100 million hedge fund focused on crypto tokens in early 2026, alongside financial services companies expected to benefit from digital asset adoption and regulatory developments.
With the planned $3.5 billion bond sale, Galaxy adds another funding milestone to its expanding AI infrastructure business while continuing to invest in digital assets, institutional services, and overall Bitcoin network development.
