Crypto players are no longer just mining coins. Galaxy Digital has launched a $3.5 billion high-yield bond offering, marking the company’s debut in the junk bond market. The proceeds are earmarked for the expansion of the Helios Data Center Campus in Dickens County, West Texas, roughly 60 miles east of Lubbock.
The Helios facility already holds regulatory approval to draw up to 1.6 gigawatts of power. All that electricity is dedicated specifically to artificial intelligence and high-performance computing needs. To facilitate the fundraising, banking giants Morgan Stanley and Goldman Sachs have stepped in to lead the bond sale.
The offering comes in the form of five-year notes issued by a Galaxy subsidiary. The terms require a 4% annual principal amortization, which begins ten months following the completion of construction.
An Anchor Tenant Ready to Pay
Galaxy is not building on speculation. AI infrastructure specialist CoreWeave has signed a 15-year lease agreement for computing capacity at Helios. Once fully operational, the deal is projected to generate more than $1 billion in annual revenue.
The first phase of Helios is already complete. The new bond issuance will fund the construction of subsequent phases, scheduled to kick off in 2027.
This capital raise aligns with broader infrastructure development trends. So far this year, AI data center developers have collectively raised approximately $28 billion through the US junk bond market. For comparison, an Applied Digital subsidiary raised $1.59 billion in the same market last month to expand CoreWeave capacity.
Football Stadium and Quantum Threats
Galaxy’s physical expansion also extends into college sports. The company entered into a 15-year naming rights agreement with Texas Tech University. Starting in the 2026 season, the football venue will officially be rebranded as Galaxy Stadium.
Yet beyond concrete and college campuses, Galaxy is keeping an eye on technical threats to the crypto ecosystem. Earlier this week, the firm launched a $5 million Bitcoin Quantum Readiness Initiative. The program is designed to fund post-quantum cryptography research.
The technical threat carries substantial risk. CryptoQuant estimates that roughly 6.9 million Bitcoin, worth $461 billion, could potentially be exposed if future quantum computers manage to break Bitcoin’s current cryptographic protections.
Pouring billions of dollars into AI data centers promises reliable revenue this decade. But for a player rooted in crypto, securing the algorithmic locks protecting hundreds of billions of dollars in assets remains far more urgent than simply erecting computing facilities.
Reported via crypto.news.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
