Galaxy Digital's shares plunged after it announced the sale of $1 billion convertible bonds

On October 28th, according to Bloomberg News, Galaxy Digital Inc.'s operating partnership announced the sale of $1 billion convertible bonds, its share price plummeted after hours. According to people familiar with the matter, Galaxy Digital Holdings LP is selling bonds with a maturity of 5.5 years, which can be converted into Galaxy Digital's common stock, with a coupon rate of 0.5% to 1%. After hours on Monday, affected by the bond sale news, as of 5:43 pm local time, the company's shares in the United States fell 10.3% to $36.45 per share. By the end of the day on Monday, its shares had risen 134% in the New York market. The issuers plan to use the net proceeds from the bond sale to support growth in core operations and possibly to repay existing exchangeable senior notes maturing in 2026, according to an earlier statement that said the bonds would mature in 2031.