Helios is a ‘Transformative Acquisition’ for Galaxy Digital, Says Novogratz
Mike Novogratz – the CEO of Galaxy Digital – praised his firm’s resolution to buy the bitcoin mining facility – Helios.
The agency just lately gained the public sale to accumulate one other cryptocurrency entity – the blockchain cybersecurity platform GK8.
‘Lengthy-Time period Believers in BTC’
In a current tweet, Novogratz justified the Helios’ acquisition with the truth that Galaxy Digital is a “long-term” believer in bitcoin. He additionally thinks lowest-cost BTC miners will prevail sooner or later, whereas the present crypto winter is a perfect time to ink such offers.
Bear markets are for constructing. We’re long-term believers in BTC and count on the lowest-cost miners to win over time. Helios is a transformative acquisition that can broaden our mining capabilities and providers as we proceed to construct for the decentralized future. https://t.co/8Zwf7Fj33t
— Mike Novogratz (@novogratz) December 28, 2022
Argo Blockchain – a distressed BTC mining group – just lately agreed to promote its Helios facility to Galaxy Digital for $65 million and thus keep away from submitting for chapter safety. Novogratz’s agency will host the mining fleet of Bitmain S19J Professionals, whereas Argo will stay an proprietor of the equipment.
The miner additionally secured a brand new asset-backed mortgage price $35 million from Galaxy Digital that ought to be repaid in three years.
Galaxy’s Endeavors within the Earlier Months
Galaxy Digital just lately gained the bid to purchase GK8 – a crypto custody platform beforehand owned by the bankrupt Celsius Community.
CEO Lior Lamesh and CTO Shahar Shamai remained a part of the agency and can lead Galaxy’s new custodial operations. The previous commented:
“With the backing of Galaxy, we goal to introduce new and thrilling choices to the business that showcase a mix of Galaxy’s best-in-class providers and GK8’s cryptography, safety, and unparalleled R&D abilities.”
Regardless of the current acquisitions, Galaxy Digital has had a bumpy experience over the previous a number of months. The agency recorded a internet complete lack of over $110 million in Q1, 2022, as a result of cryptocurrency market crash.
The monetary providers firm was rumored to scale back the dimensions of its workforce by as much as 20% in November. Thus, it will have joined the likes of a number of cryptocurrency organizations which dismissed workers this 12 months, together with Coinbase, Gemini, Huobi, BlockchainCom, BitMEX, Bybit, and extra.
The FTX fiasco additionally induced extreme monetary harm to Galaxy Digital, which held greater than $76 million price of publicity to the bankrupt trade.