Galaxy Digital faces $346M annual interest for CoreWeave hub

Galaxy Digital priced $3.507 billion of 9.875% senior secured notes on July 23 to fund Phase II of the CoreWeave-linked Helios data-center campus in Texas. The coupon implies roughly $346.3 million in cash interest each year, with payments set to begin in 2027.

The notes carry a 9.875% coupon, with semiannual interest payments due Feb. 1 and Aug. 1 starting in 2027. The transaction is expected to close on July 28 and the securities mature on Aug. 1, 2031. Galaxy has not disclosed the amount of the first interest payment, which will cover only part of 2027.

Principal repayment follows a separate schedule. The notes are slated to amortize at 4% of original principal annually, equal to about $140.28 million per year before adjustments, paid in semiannual installments. The first principal payment is scheduled to occur at least 10 months after project completion, and the amortization schedule may be adjusted based on final project outcomes.

The financing is secured by first-priority liens on nearly all project assets, including the project company Galaxy Helios Data Centers II LLC, its project guarantor and the parent-held equity in the issuer. Those liens are limited to the project entities and do not extend to Galaxy Digital’s broader assets.

Proceeds will fund part of two data-center buildings with eight data halls at the Helios campus, support a planned 400 megawatts of utility capacity and about 260 megawatts of critical IT capacity, and provide debt-service reserves for the Phase II build.

CoreWeave committed to approximately 260 megawatts of incremental critical IT load for Phase II in April 2025 under terms Galaxy described as substantially similar to a 15-year, 133 MW agreement for Phase I. Galaxy reported Phase I was completed on schedule on July 6 and indicated Phase II data-hall deliveries are expected to begin in the first half of 2027.

Interest payments begin on a fixed calendar schedule in 2027 while principal amortization is tied to project completion. The project delivery timeline will therefore determine the timing and size of cash outflows for principal and interest through the notes’ 2031 maturity.