Galaxy Digital Holdings CEO Mike Novogratz has known as the Helios mining deal a “transformative acquisition” for the corporate as it really works to extend its publicity to the Bitcoin mining sector.
The crypto funding agency’s $65 million acquisition of Argo Blockchain’s flagship mining facility was introduced on Dec. 28 as a part of Argo’s drastic measures to keep away from chapter.
In a Dec. 29 tweet in regards to the deal, Novogratz emphasised that Galaxy “strongly believes within the long-term way forward for Bitcoin (BTC) and the corporate will proceed to ramp up its mining initiatives:
“Bear markets are for constructing. We consider in BTC over the long run and count on the bottom value miners to win over time. Helios is a transformative acquisition that can develop our mining capabilities and providers as we proceed to construct for the decentralized future.”
Since we began bitcoin mining within the first quarter of 2021, we now have outsourced our miners to internet hosting suppliers. However we all the time had the concept that we’d combine our mining abilities vertically.
— Mike Novogratz (@novogratz) December 28, 2022
Explaining the deal in additional element, the Galaxy CEO outlined that the corporate had a particular “thesis” on strategy the mining sector: “low-cost energy, a really environment friendly workforce” and “purchase ASIC miners low-cost.”
“This can be a recipe for achievement in mining, even when the hash fee will increase,” he mentioned.
Latest Hashrate Index knowledge has seen Bitcoin ASIC miner costs hovering round lows not seen since at the least 2021, with essentially the most environment friendly ASIC miners costs falling 86.8% from their Might 2021 peak are.
Galaxy has 5 divisions in trading, wealth administration, crypto mining, enterprise investing and funding banking. In line with its website, the corporate at present has $1.9 billion in property underneath administration.
Presently, Galaxy has primarily used internet hosting providers for its mining operations. Nonetheless, Novogratz notes that proudly owning 200 megawatt (MW) capability Helios won’t solely permit the corporate to function miners by itself premises, but in addition to host them for others.
Helios doubtlessly has a fantastic potential to scale to make it one of many largest miners on the market. Argo Blockchain already revealed in Might this yr that it has plans to extend electrical capability to 800 MW in “the approaching years”.
On the time, the corporate additionally mentioned it anticipated Helios to succeed in BTC mining capability of 5.5 exahashes per second by the top of the yr, with the potential to ultimately attain 20 EH/s.
It seems that Galaxy has some money to inject amid the 2022 bear market, contemplating it additionally supplied Argo Blockchain with a $35 million gear financing mortgage alongside the acquisition.
Associated: BTC Value Holds $16.5K However Funding Charges Improve Risk Of Recent Bitcoin Bottoms
The transfer additionally provides one other coup from earlier this month, when Galaxy acquired crypto self-custody platform GK8 for an undisclosed payment.
GK8 was auctioned off as a part of Celsius’ chapter proceedings after the defunct crypto lender purchased the corporate for $115 million in 2021.
Novogratz known as the acquisition a “crucial cornerstone in our efforts to create a real full-service financial platform for digital property.”