On July 28, Galaxy Digital Holdings Ltd. fell 8.11% in regular trading to $20.4/share, with turnover of $44.18 million. The decline comes as the market digests a series of capital-intensive announcements indicating aggressive leverage and expansion.

Galaxy Digital priced a $3.51 billion private offering of 9.875% senior secured notes due 2031, classified as high-yield junk bonds, with the offering expected to close on the same week. Proceeds are earmarked to finance construction of eight data halls in Texas totaling 400 MW of utility capacity and 260 MW of critical IT capacity. On the same day, the company announced acquiring approximately 500 acres in McGregor, Texas for $7.5 million to build another AI and high-performance computing data center campus, with an initial phase targeting 74 MW by 2028.

The aggressive capital deployment pace, combined with the high borrowing cost on over $3.5 billion in new debt, appears to be weighing on investor sentiment ahead of the August 5 earnings report, where adjusted EPS is expected at -$0.20.

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