Crypto financial services company Galaxy Digital is looking to raise $500 million through the issuance of exchangeable senior notes in order to accelerate its business initiatives, the company said in a press release on 29 November.
According to the announcement, the company will issue $500 million worth of exchangeable senior notes that will reach maturity in 2026 — with the debt bearing an interest rate of 3% per year — which holders can exchange for company stock. The deal is expected to close this December, pending approval from the Toronto Stock Exchange, where Galaxy Digital’s shares are listed.
Once Galaxy Digital has completed the fundraising it will focus on expanding its asset management business, with the launch of a new fund, as well as its mining operations. Funds will also go towards hiring new talent — with the company expecting to reach an 850 headcount by the end of the year — and scaling Galaxy Digital’s trading and markets business.
Founded by billionaire investor Michael Novogratz, Galaxy Digital has experienced a significant growth in the past year, with its net income rising to $517 million in Q3 from almost $42 million in Q3 2020. While it is registered in the Cayman Islands, the company is planning to restructure and list its shared in the U.S. next year, and has already filled an application with the Securities and Exchange Commission.
The company became the “first full-service financial platform for digital assets” back in May, when it acquired U.S.-regulated crypto custody specialist BitGo for $1.2 billion in stock and cash. Earlier this month Galaxy Digital also revealed it had invested $62 million of its capital into 22 non-fungible token (NFT) companies since the start of the year.