Galaxy Digital CEO Now Calls $65 Million Deal A Transformative Acquisition

Key Points:

• Novogratz highlighted that Galaxy is a strong believer in Bitcoin’s long-term prospects.
• By owning a 200 MW Helios, the firm will be able to host additional miners.

Mike Novogratz, the CEO of Galaxy Digital Holdings, referred to the Helios mining agreement as a “transformative acquisition” for the company as it seeks to broaden its exposure to the Bitcoin mining industry.

Two days ago, Coincu reported that Bitcoin miner Argo Blockchain had decided to sell its Helios mining operation in Dickens County, Texas, to Galaxy Digital for $65 million as part of Argo’s drastic action to stave off bankruptcy.

After which, Galaxy Digital Holdings CEO Novogratz stressed on December 29 that Galaxy is a “strong believer” in the long-term future of Bitcoin in a tweet about the purchase on December 29 and that the business would keep stepping up its mining activities.

According to Galaxy’s website, trading, asset management, cryptocurrency mining, venture capital, and investment banking are among the five business segments in which the firm operates. Additionally, it also indicates that the assets it is managing are worth $1.9 billion at the moment.

Galaxy’s mining efforts as of late have primarily relied on its hosting services. However, Novogratz points out that by owning a 200 MW Helios, the corporation will be able to host additional mines in addition to operating its own. Potentially having a lot of scaling capacity, Helios might become one of the most powerful miners available.

Besides, the company also expects Helios will be able to mine Bitcoin at a rate of 5.5 exahashes per second by the end of the year, with the potential to increase to 20 EH/s in the future.

The move also builds on Galaxy’s earlier this month acquisition of cryptocurrency self-custody platform GK8 for an unknown sum as a victory. After being purchased for $115 million by the now-bankrupt crypto lender Celsius in 2021, GK8 was being auctioned off as part of the Celsius bankruptcy proceedings.

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