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

Galaxy Digital has launched a planned $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 intends to use the proceeds from its first junk bond offering to finance part of the Helios Data Center Campus in Dickens County, Texas, while also funding debt service reserves tied to the project.

The planned issuance adds Galaxy to a growing list of infrastructure developers using the U.S. high-yield debt market to fund large artificial intelligence projects. Bloomberg data shows developers have already raised about $28 billion through U.S. junk bond offerings this year to finance AI-focused data center construction.

The transaction is expected to price on July 23, according to a person familiar with the matter cited by Bloomberg. Morgan Stanley and Goldman Sachs are leading the sale, while 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, according to the same source, who requested anonymity because the information is not public.

CoreWeave contract supports long-term expansion

Earlier this month, Galaxy said CoreWeave had signed 15-year agreements to lease computing capacity at the Helios campus. According to the company’s previous announcement, those contracts are expected to generate more than $1 billion in annual revenue once operational.

The company also said the first phase of the Helios project has already been completed. Construction on the next phase is expected to begin in 2027 as Galaxy continues expanding the campus for artificial intelligence and high-performance computing workloads.

Located in Dickens County, roughly 60 miles east of Lubbock, the Helios campus has regulatory approval for up to 1.6 gigawatts of power dedicated to AI and high-performance computing, according to Galaxy’s previously released figures.

The financing plan follows another large AI infrastructure transaction completed last month. Bloomberg data shows an Applied Digital subsidiary raised approximately $1.59 billion in the U.S. junk bond market to expand computing capacity for CoreWeave at a North Dakota facility.

Before pursuing the current bond offering, Galaxy had primarily relied on convertible note offerings to raise capital for its operations.

AI infrastructure becomes a larger part of Galaxy’s business

Originally known for its digital asset businesses, Galaxy has steadily increased its investment in artificial intelligence infrastructure during 2026 alongside its cryptocurrency operations.

The Helios campus has become one of the company’s largest long-term infrastructure projects as demand for AI computing capacity continues to grow. Its partnership with CoreWeave places the site among several facilities being developed to support large-scale AI training and cloud computing services.

Galaxy has also tied the project to regional partnerships in West Texas. 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.

According to Galaxy’s announcement at the time, the agreement also made the company Texas Tech Athletics’ official digital assets and data center partner. Besides stadium naming rights, both parties said they plan to collaborate on artificial intelligence initiatives, workforce training programs and opportunities involving student-athletes’ names, images and likenesses, although financial terms were not disclosed.

The university partnership links Galaxy’s existing data center operations in Dickens County with one of the region’s highest-profile athletic programs, further strengthening its presence in West Texas as development of the Helios campus continues.

Crypto business continues expanding alongside AI

Even as Galaxy increases spending on AI infrastructure, it has continued expanding other parts of 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.

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 work on post-quantum cryptography.

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. While the company acknowledged that such machines are not expected to pose an immediate threat, it argued that preparing the ecosystem would require years of coordination across developers, exchanges, wallet providers and infrastructure operators.

The company has also expanded its regulated financial services business this year. 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.

With the planned $3.5 billion bond sale, Galaxy is adding another financing milestone to its expanding AI infrastructure business while continuing to invest across digital assets, institutional services and Bitcoin network development.