Galaxy Locks in $1.4B Deutsche Bank Loan at ~9% for Helios Bitcoin-to-AI Conversion
Galaxy Digital has closed a $1.4 billion debt facility to fund the conversion and expansion of its Helios bitcoin mine in Texas into a high-performance computing (HPC) data center.
The financing, issued through Galaxy Helios I LLC, will support construction of the project’s first phase, with power delivery to AI cloud provider CoreWeave expected in early 2026. Galaxy contributed $350 million in equity, while the new debt covers the remaining construction costs. The loan was arranged by Deutsche Bank’s New York branch, with GLAS USA LLC serving as administrative and collateral agent.
According to an SEC filing, the debt is structured as a $1.4 billion senior secured term loan maturing in August 2028. Borrowings are priced at one-month Term SOFR plus 4.75%, with a 2.5% minimum floor.
SOFR — the Secured Overnight Financing Rate — is the benchmark U.S. lending rate that reflects the cost of borrowing cash overnight secured by Treasuries. With the one-month Term SOFR currently around 4.36%, Galaxy Helios I’s effective borrowing cost is about 9.1%. That elevated rate highlights the premium lenders are charging for capital-intensive projects in emerging sectors like AI infrastructure.
The loan is secured only by the Helios assets and equity interests in Galaxy Helios I — insulating Galaxy’s other businesses — but it comes with covenants requiring the borrower to maintain financial discipline. For example, Galaxy Helios I must keep a debt service coverage ratio of at least 1.40 after the project reaches “stabilization,” meaning cash flow must be at least 1.4 times debt payments. The financing also permits Galaxy to recover part of its upfront equity through a one-time dividend at closing.
The Helios site in Dickens County, Texas, was originally built as one of the largest bitcoin mines in North America by London-listed Argo Blockchain (NASDAQ: ARBK). In late 2022, as the crypto bear market left Argo struggling with debt, Galaxy acquired the facility in a distressed deal, extinguishing much of Argo’s outstanding debt to Galaxy in exchange for the site.
What began as a bitcoin mining hub is now being transformed into an HPC campus designed to meet surging demand for AI computing. CoreWeave, a rapidly growing AI cloud provider, has signed long-term leases for the full 800 megawatts of approved power capacity at Helios. Galaxy estimates these contracts could generate more than $1 billion in annual revenue over a 15-year term, assuming full utilization.
