Mike Novogratz Considers Galaxy's Helios Purchase "Transformative"
Jessie A Ellis Dec 30, 2022 00:55
Galaxy Digital Holdings CEO Mike Novogratz dubbed the Helios mining transaction "transformative." Dec. 28 saw the crypto investment firm's $65 million purchase of Argo's main mining plant. Galaxy operates trading, asset management, crypto mining, venture investments, and investment banking.
As Galaxy Digital Holdings attempts to grow its exposure to the Bitcoin mining industry, the CEO of the company, Mike Novogratz, has described the plan to acquire Helios Mining as a “transformative acquisition” for the company.
The crypto investment company made the announcement on the 28th of December that it would be purchasing Argo Blockchain's flagship mining operation for $65 million. This transaction was part of Argo's dramatic measure to fend off bankruptcy.
On December 29, Novogratz tweeted about the acquisition and stressed that Galaxy is a big believer in the long-term future of Bitcoin and that the firm would continue to ramp up its mining operations. Novogratz was commenting on the fact that Galaxy will continue to ramp up its mining initiatives.
In his additional explanation of the transaction, Galaxy's Chief Executive Officer stated the company's unique thesis on how it intends to approach the mining industry, which is as follows: "low-cost power, a highly efficient staff," and "purchasing ASIC miners inexpensively."
The most recent findings from Hashrate Index indicate that the costs of Bitcoin ASIC miners are hanging at lows that have not been seen since at least 2021. The prices of the most efficient ASIC miners have dropped by 86.8 percent since reaching their high in May 2021.
According to the information provided on its website, the company is now managing assets worth a total of $1.9 billion.
Novogratz points out, however, that if the firm has 200 megawatts (MW) capacity Helios, it will not only be able to operate miners on its own site, but it will also be able to host for other people.
Helios has the potential to scale very well, which would put it in the running to be one of the largest miners on the market.
A prior announcement made by Argo Blockchain in May of this year said that the company intended to boost its electricity capacity to 800MW in the years to come.
Additionally, the company said at the time that it anticipated Helios will achieve a Bitcoin mining capacity of 5.5 exahashes per second by the end of the year, with the possibility that it would ultimately reach 20 EH/s.
Given that Galaxy also extended Argo Blockchain a $35 million equipment financing loan in conjunction with the transaction, it would suggest that Galaxy has some cash on hand to spend despite the bear market that is expected in 2022.
