Mike Novogratz calls Helios a 'transformative acquisition' for Galaxy
Galaxy Digital Holdings CEO Mike Novogratz has called the Helios mining deal a “transformative acquisition” for the firm as it works to increase its exposure to the Bitcoin mining sector.
The crypto investment firm’s $65 million acquisition of Argo Blockchain’s flagship mining facility was announced on Dec. 28 as part of Argo’s drastic action to stave off bankruptcy.
Tweeting about the deal on Dec. 29, Novogratz emphasized that Galaxy is a “strong believer” on the long-term future of Bitcoin (BTC) and the the company will continue to ramp up its mining initiatives:
Since we started mining bitcoin in Q1 2021, we outsourced our miners to hosting providers. But we always had the idea that we would vertically integrate our mining capabilities.
Explaining the deal in further detail, the Galaxy CEO outlined that the firm has a specific “thesis” on how to approach the mining sector which consists of “low-cost electricity, a very efficient team” and “buying ASIC miners cheap.”
“That’s a recipe for success in mining, even when the hash rate rises,” he said.
Recent data from Hashrate Index found that Bitcoin ASIC miner prices are hovering at lows not seen since at least 2021, with the most efficient ASIC miners seeing their prices fall 86.8% from their peak in May 2021.
Galaxy has five business lines across trading, asset management, crypto mining, venture investments and investment banking. According to its website, it currently has $1.9 billion worth of assets under management.
As it stands, Galaxy has mainly utilized hosting services for its mining operations, however Novogratz notes that owning 200 megawatt (MW) capacity Helios will not only let the company run miners on its own site, but host for others as well.
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