Mike Novogratz’s Galaxy Digital (GLXY) is selling $1.15 billion in convertible notes in a private deal, up from last night’s original offer of $1 billion.
Estimated net income of $1.127 billion (or $1.274 billion if Greenshoe’s full $150 million option is exercised), said the company. The notes, which carry an annual interest rate of 0.50% and mature May 1, 2031, are exchangeable at an initial rate of 17.9352 shares per $1,000 principal amount – equivalent to an exchange price of about $55.76, a 37.5% premium to the stock’s October 27 closing price.
The proceeds will support growth in Galaxy’s core businesses and could be used to repay the 2026 convertible notes. The notes cannot be redeemed before November 6, 2028, and become redeemable after if Galaxy’s share price trades 130% above the exchange price for a sustained period.
The transaction remains subject to TSX approval, expected on October 30, 2025.
Galaxy Digital shares fell 7.6% in New York following the announcement, though they remain up 110% year to date, currently trading around $37.46.
