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

On October 28, according to Bloomberg, the operating partnership of Galaxy Digital Inc. saw its after-hours share price plummet after announcing the issuance of $1 billion in convertible bonds. Sources revealed that Galaxy Digital Holdings LP is issuing bonds with a term of 5.5 years, which can be converted into Galaxy Digital common stock, with a coupon rate ranging from 0.5% to 1%. In after-hours trading on Monday, affected by the news of the bond issuance, as of 5:43 p.m. local time, the company's share price in the U.S. had dropped by 10.3% to $36.45 per share. Prior to the close on Monday, its share price had already risen by 134% in the New York market. An earlier statement indicated that these bonds will mature in 2031. The statement said that the issuer plans to use the net proceeds from this bond issuance to support the growth of its core operating business and may also use them to repay existing exchangeable senior notes due in 2026.