Galaxy Digital Plans to Raise $500 Million in Debt Market to ‘Accelerate Growth Initiatives’ – Finance Bitcoin News

Galaxy Digital Holdings Ltd. revealed that the company is looking for $500 million to fund 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 Launches Senior Note Exchangeable Offering

Galaxy Digital, an investment company (TSX:GLXY), seeks to raise $500,000,000 through an exchangeable senior note offering. This convertible debt will help the business grow. Galaxy explains that the private placing will close early in December 2021. This will require approval from Toronto Stock Exchange. 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 aggregate principal amount of 3.00% exchangeable senior notes due 2026 to certain purchasers, including affiliates of Arca, NZ Funds, Senator Investment Group and XN, in a private placement under the Securities Act of 1933,” Galaxy revealed on Tuesday. Galaxy also added:

Galaxy Digital plans to make use of the Notes Offering proceeds to fund growth initiatives in its various business lines as well as general corporate purposes.

Galaxy raised $325M for Interactive Fund in October. A slew of crypto firms leveraged debt markets to raise capital

The scheme to raise $500 million in the debt market follows Galaxy’s recent capital raise of $325 million in October. The $325 million in funding will be tied to the firm’s second interactive content and technology fund. Some of Galaxy’s interactive fund investments have been publicly announced and include projects like Masterworks, Art Blocks, ROAR, 1047 Games, Elodie, and Republic.

Galaxy launched a decentralized finance fund (defi), in August last year that allows investors to access a variety of defi tokens. Galaxy partnered with TIME, a well-known global media company and publication in mid-November. Galaxy Digital Holdings Ltd., a crypto company that leverages debt markets for expansion, isn’t the only one. Marathon Digital Holdings announced plans to raise $500,000,000 from convertible senior notes.

Microstrategy, a publicly traded company, has used exchangeable senior notes offerings to buy bitcoin (BTC), on numerous occasions. Galaxy shares have risen 174% over the past year, trading for $8.74 in January and then changing hands today for $24.01. Galaxy currently manages $650 million of assets (AUM), as well as a range of investments in more 75 businesses.

This story contains tags
$500 million, 1047 Games, Art Blocks, Convertible Notes, Crypto, Cryptocurrency, DeFi, DeFi fund, Elodie, exchangeable notes, fund, Galaxy, Galaxy Digital, Galaxy Digital Holdings Ltd., Interactive Fund, investment fund, Marathon Digital Holdings, Masterworks, microstrategy, Mike Novogratz, Republic, ROAR

Galaxy Digital is looking for convertible notes to raise $500m. Please comment below to let us know your thoughts on this topic.

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