Galaxy Digital issues $500 million in convertible bonds

Galaxy Digital, the crypto-trading bank, announced a $500 million offering of convertible unsecured senior notes due December 15, 2026, according to a press release.

The securities were purchased by qualified institutional buyers in a private placement.

The coupon, at a rate of 3% per year, is paid semi-annually — on June 15 and December 15.

The proceeds will be used to “accelerate growth initiatives across its business lines and for general corporate purposes.”

Earlier, the board of directors approved the proposed corporate reorganization in connection with the relocation from Canada to the United States.

Upon certain events and at specified periods, holders will be able to convert their notes into shares of the Delaware-registered holding company Galaxy Digital, or, at the issuer’s option, into cash or a combination thereof.

Starting December 15, 2024, the crypto-trading bank may redeem the notes in whole or in part, pursuant to the terms set forth in the notes prospectus.

In November, announced a US-dollar bond issue by the British mining company Argo Blockchain. The firm intends to offer notes bearing a coupon of 8.75% for $57.5 million.

In June, Galaxy Digital provided Argo with a loan of £14 million (~$19.4 million) secured by bitcoin.

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