Galaxy faces $346M annual interest bill for Texas AI build

Galaxy Digital's Texas data-center project now carries an annual interest bill of about $346.3 million, putting construction progress at the center of its financing risk. A project subsidiary priced $3.507 billion in senior secured notes at a 9.875% coupon on July 23. The deal is expected to close on July 28, with the notes maturing on Aug. 1, 2031.

The funding will help build two buildings containing eight data halls at the Helios campus. The facilities are planned for 400 megawatts of utility capacity and 260 MW of critical IT capacity. Some proceeds will also fund debt-service reserves.

Interest will be paid in cash every Feb. 1 and Aug. 1, starting in 2027. The first payment will cover less than a full period, although Galaxy has not disclosed the exact amount. Principal repayments are separate: 4% of the original balance each year, or $140.28 million before adjustments, paid in half-year installments after construction ends. The first such payment is due at least 10 months after completion.

Creditors have first-priority claims on most project assets and the parent company's stake in the issuer, but not on Galaxy Digital's broader assets. Phase II deliveries to CoreWeave are expected to start in the first half of 2027, making the schedule a direct test of the deal's economics.