Galaxy Digital's stock price plummeted after announcing the sale of $1 billion in convertible bonds

ChainCatcher news, according to Bloomberg, Galaxy Digital Inc.'s operating partnership announced the sale of $1 billion in convertible bonds, leading to a sharp decline in its after-hours stock price.

Insiders revealed that Galaxy Digital Holdings LP is issuing bonds with a term of 5.5 years, which can be converted into common stock of Galaxy Digital, with a coupon rate of 0.5% to 1%. On Monday after hours, influenced by the bond sale news, the company's stock price in the U.S. fell by 10.3% to $36.45 per share as of 5:43 PM local time. Prior to the close on Monday, its stock price had already risen by 134% in the New York market. An earlier statement indicated that these bonds will mature in 2031. The statement noted that the issuer plans to use the net proceeds from this bond sale to support the growth of its core operating business and may be used to repay existing exchangeable preferred notes maturing in 2026.