Michael Novogratz's crypto company Galaxy Digital has placed $500 million in convertible senior unsecured notes due Decembers 15, 2026, according to a press release.
The bonds were purchased by qualified investors in a private placement. A coupon is payable at a rate of 3% per annum every six months: on June 15 and December 15.
Galaxy Digital has reported it will use the funds raised to "accelerate growth initiatives across its business lines and for general corporate purposes."
The company's board of directors has previously approved the proposed corporate reorganization in connection with the move from Canada to the United States.
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Under certain circumstances and for designated periods, noteholders will be able to convert their notes into shares of Delaware Galaxy Digital holding company stock, as well as cash or a combination of both.
Beginning next December 15, 2024, Galaxy Digital may redeem all or part of the bonds in accordance with the terms specified in the prospectus.