Galaxy Digital subsidiary Galaxy Helios Data Centers II plans to offer $3.507 billion of senior secured notes due 2031 in a private transaction, according to an SEC filing dated July 22.
Galaxy intends to use the net proceeds to fund part of Helios Phase II in Dickens County, Texas, and build debt-service reserves. The project consists of two buildings with eight data halls, offering 400 MW of utility capacity and 260 MW of critical IT capacity.
CoreWeave has contracted for the project's full critical IT load under a 15-year base lease with two five-year extension options. Galaxy is targeting minimum rent commencement in the second quarter of 2027, while its presentation lists $10.4 billion in minimum contracted lease payments over the initial term.
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Galaxy's illustrative model shows $472 million of rent and $424 million of net operating income in 2028, which results in a 90% NOI margin. The presentation describes the lease as near triple-net, with CoreWeave covering costs such as utilities, taxes, insurance, maintenance and ordinary repairs.
Galaxy completed Phase I this month, and CoreWeave is now receiving 133 MW of critical IT load through a 15-year lease. "The demand for high-density, AI-ready power is not a cycle; it is a structural shift, and Galaxy is built to meet it," founder and CEO Mike Novogratz said.
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Galaxy acquired Helios, then a bitcoin mining site, from Argo Blockchain in late 2022 for about $65 million. It later closed a $1.4 billion loan to fund the initial conversion for AI/HPC workloads, alongside $350 million of Galaxy equity.
