Galaxy Digital Holdings Ltd. has revealed the firm is looking to raise $500 million in an exchangeable senior note offering. The investment company, founded by billionaire investor Mike Novogratz in January 2018, aims to use the funds to “accelerate growth initiatives across its business lines.”
Galaxy reveals offer of exchangeable senior tickets
The investment firm Galaxy Digital (TSX: GLXY) aims to raise $500 million via an exchangeable senior note offering. The convertible debt will be used to continue expanding the business. Galaxy details that the private placement will close in early December 2021 and will be subject to Toronto Stock Exchange (TSX) approval. Notes will only be sold to persons who qualify as “institutional buyers,” the announcement explains.
“Galaxy Digital has agreed to issue and sell $ 500 million in aggregate principal of 3.00% exchangeable senior bonds due 2026 to certain buyers, including affiliates of Arca, NZ Funds, Senator Investment Group and XN, in a private placement under the Securities Act of 1933. “Galaxy revealed Tuesday. Galaxy added:
Galaxy Digital intends to use the proceeds from the Notes offering to accelerate growth initiatives across its business lines and for general corporate purposes.
Galaxy raised $ 325 million for an interactive fund in October, with a slew of crypto firms leveraging debt markets to raise capital
The plan to raise $ 500 million in the debt market follows Galaxy’s recent $ 325 million capital increase in October. The $ 325 million funding will be tied to the company’s second interactive content and technology fund. Some of Galaxy’s interactive fund investments have been publicly announced and include projects such as Masterworks, Art Blocks, ROAR, 1047 Games, Elodie, and Republic.
The plan to raise $ 500 million in the debt market follows Galaxy’s recent $ 325 million capital increase in October. The $ 325 million funding will be tied to the company’s second interactive content and technology fund. Some of Galaxy’s interactive fund investments have been publicly announced and include projects such as Masterworks, Art Blocks, ROAR, 1047 Games, Elodie, and Republic.
The publicly traded company Microstrategy has also taken advantage of the exchangeable senior note offers to buy bitcoin (BTC) on various occasions. At the time of writing, Galaxy shares are up 174% year-to-date, trading for $ 8.74 on January 4 and changing hands for $ 24.01 today. Currently, Galaxy has $ 650 million in assets under management (AUM) and a range of investments in more than 75 companies.
