Galaxy Digital’s $3.507 billion funding to build its CoreWeave data center in Texas comes at a hefty price tag of about $346.3 million annually.
The Galaxy Project subsidiary priced its senior secured notes at 9.875% on July 23. The transaction is expected to close on July 28, and the notes mature on August 1, 2031.
This funding is intended to cover part of two buildings with eight data halls on the Helios campus. The facility is planned to have 400 MW of utility capacity and 260 MW of critical IT capacity, with a portion of the proceeds also earmarked for debt service reserves.
The 9.875% coupon represents an annual interest rate of $346.3 million, payable in cash on February 1 and August 1 of each year beginning in 2027. The first payment covers only part of the year, but Galaxy did not reveal the exact amount.
Repayment begins as soon as construction is completed
Principal repayments will be made on a separate schedule. The note is subject to adjustment and will be amortized annually at 4% of its principal. This equates to $140.28 million per year before adjustment, to be paid in semi-annual installments, with the first payment due at least 10 months after project completion.
Interest begins on a fixed schedule, but principal repayments wait until construction is complete and adjusted. Creditors will have a first-class claim on substantially all project assets and the parent company’s equity in the issuer.
The disclosed liens cover Galaxy Helios Data Centers II LLC, its project guarantors, and the issuer’s parent holdings. These generally do not apply to Galaxy Digital assets.
CoreWeave has committed to incrementally add approximately 260 MW of critical IT loads in Phase II in April 2025. Galaxy described the terms as substantially similar to its previously announced 15-year, 133 MW Phase I contract.
Delivery is currently a central operational test. Galaxy announced on July 6 that Phase I has been completed on schedule and Phase II data hall deliveries are expected to begin in the first half of 2027.
Currently, construction schedules come with clear economic costs. Galaxy’s delivery schedule is centered around the CoreWeave contract and debt through 2031, as interest begins in 2027 but principal repayments wait until the project is complete.
