Galaxy Digital secures 3.507 billion financing for CoreWeave AI center with 346.3 million annual interest

Galaxy Digital's financing of 3.507 billion dollars for its CoreWeave data center in Texas incurs an annual interest of 346.3 million dollars at a 9.875% coupon rate. The senior secured notes were priced on July 23 and are set to close on July 28, maturing on August 1, 2031. The financing will support two buildings with eight data halls at the Helios campus, designed for 400 megawatts of utility capacity and 260 megawatts of critical IT capacity, with some funds allocated for debt-service reserves. Interest payments will commence on February 1 and August 1 starting in 2027, with the first payment covering part of a year. Principal repayments will begin after construction completion, amortizing at 4% of the original principal annually, amounting to 140.28 million dollars before adjustments, paid semiannually. Creditors will have first-priority claims on nearly all project assets. CoreWeave has committed to an additional 260 megawatts of critical IT load for Phase II by April 2025, with Phase I completed on schedule and Phase II deliveries expected in the first half of 2027. The financial implications of the construction schedule are significant, as interest payments begin in 2027 while principal repayments are contingent on project completion, affecting Galaxy's obligations through 2031.

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