Mike Novogratz calls Helios a 'transformative acquisition' for Galaxy

Galaxy Digital Holdings CEO Mike Novogratz has called the Helios mining woody a “transformative acquisition” for the steadfast arsenic it works to summation its vulnerability to the Bitcoin mining sector.

The crypto concern firm’s $65 cardinal acquisition of Argo Blockchain’s flagship mining installation was announced connected Dec. 28 arsenic portion of Argo’s drastic enactment to stave disconnected bankruptcy.

Tweeting astir the woody connected Dec. 29, Novogratz emphasized that Galaxy is simply a “strong believer” connected the semipermanent aboriginal of Bitcoin (BTC) and the the institution volition proceed to ramp up its mining initiatives:

“Bear markets are for building. We’re semipermanent believers successful BTC and expect the lowest-cost miners to triumph implicit time. Helios is simply a transformative acquisition that volition grow our mining capabilities and services arsenic we proceed to physique for the decentralized future.”

Since we started mining bitcoin successful Q1 2021, we outsourced our miners to hosting providers. But we ever had the thought that we would vertically integrate our mining capabilities.

— Mike Novogratz (@novogratz) December 28, 2022

Explaining the woody successful further detail, the Galaxy CEO outlined that the steadfast has a circumstantial “thesis” connected however to attack the mining assemblage which consists of “low-cost electricity, a precise businesslike team” and “buying ASIC miners cheap.”

“That’s a look for occurrence successful mining, adjacent erstwhile the hash complaint rises,” helium said.

Recent information from Hashrate Index recovered that Bitcoin ASIC miner prices are hovering astatine lows not seen since astatine slightest 2021, with the astir businesslike ASIC miners seeing their prices autumn 86.8% from their highest successful May 2021.

Galaxy has 5 concern lines crossed trading, plus management, crypto mining, task investments and concern banking. According to its website, it presently has $1.9 cardinal worthy of assets nether management.

As it stands, Galaxy has chiefly utilized hosting services for its mining operations, nevertheless Novogratz notes that owning 200 megawatt (MW) capableness Helios volition not lone fto the institution tally miners connected its ain site, but big for others arsenic well.

Helios perchance has a batch of scaling quality to marque it 1 of the biggest miners connected the market. Argo Blockchain antecedently outlined successful May this twelvemonth that it had plans to summation electrical capableness to 800MW successful “the coming years.”

At the time, the steadfast besides said it expected Helios to scope a BTC mining capableness of 5.5 exahashes per 2nd by the extremity of the year, with the imaginable to yet deed 20 EH/s.

It appears that Galaxy has immoderate currency to splash amid the 2022 bear, considering that it besides gave Argo Blockchain a $35 cardinal instrumentality concern indebtedness alongside the acquisition.

Related: BTC terms preserves $16.5K, but backing rates rise hazard of caller Bitcoin lows

The determination besides adds different coup from earlier this period successful which Galaxy snapped up crypto aforesaid custody level GK8 for an undisclosed fee.

GK8 was being auctioned disconnected arsenic portion of the Celsius bankruptcy process, aft the defunct crypto lender snapped up the steadfast for $115 cardinal successful 2021.

Mike Novogratz, laminitis and CEO of Galaxy called the acquisition a “crucial cornerstone successful our effort to make a genuinely full-service fiscal level for integer assets.”