Cryptocurrency

Helios is a ‘Transformative Acquisition’ for Galaxy Digital, Says Novogratz

Mike Novogratz – the CEO of Galaxy Digital – praised his firm’s choice to buy the bitcoin mining facility – Helios.

The agency not too long ago gained the public sale to amass one other cryptocurrency entity – the blockchain cybersecurity platform GK8. 

‘Lengthy-Time period Believers in BTC’

In a latest 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.

Argo Blockchain – a distressed BTC mining group – not too long ago 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 value $35 million from Galaxy Digital that ought to be repaid in three years. 

Galaxy’s Endeavors within the Earlier Months

Galaxy Digital not too long ago 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 intention to introduce new and thrilling choices to the business that showcase a mix of Galaxy’s best-in-class companies and GK8’s cryptography, safety, and unparalleled R&D abilities.”

Regardless of the latest acquisitions, Galaxy Digital has had a bumpy journey over the previous a number of months. The agency recorded a web complete lack of over $110 million in Q1, 2022, as a result of cryptocurrency market crash.

The monetary companies firm was rumored to scale back the scale of its crew by as much as 20% in November. Thus, it will have joined the likes of a number of cryptocurrency organizations which dismissed staff this yr, together with Coinbase, Gemini, Huobi, BlockchainCom, BitMEX, Bybit, and extra.

The FTX fiasco additionally brought on extreme monetary harm to Galaxy Digital, which held greater than $76 million value of publicity to the bankrupt trade. 

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