The deal was part of Argo's efforts to avoid bankruptcy and allowed Galaxy Digital to increase its exposure to the Bitcoin mining sector. Mike Novogratz, CEO of Galaxy Digital, called the acquisition a "transformative" move that will allow the company to expand its mining capabilities and services. Novogratz emphasized that Galaxy is a "strong believer" in Bitcoin's long-term future and will continue ramping up its mining initiatives.
Galaxy Digital's Approach to Bitcoin Mining
In a tweet, Mike Novogratz, CEO of Galaxy Digital, outlined the company's approach to the mining sector, which includes "low-cost electricity, a very efficient team," and "buying ASIC miners cheap." Novogratz stated that this is a recipe for success in mining, even when the hash rate rises. Data from Hashrate Index showed that the prices of Bitcoin ASIC miners are currently at lows not seen since at least 2021, with the most efficient miners seeing their prices fall 86.8% from their peak in May 2021.
Features of the Acquired Mining Facility
The acquisition of Argo Blockchain's Helios mining facility will allow Galaxy Digital to run miners on its own site and host for others. The facility has the potential to scale and become one of the biggest miners on the market, with Argo Blockchain previously outlining plans to increase its electrical capacity to 800MW in the coming years. Helios is expected to reach a BTC mining capacity of 5.5 exahashes per second by the end of the year, with the potential to hit 20 EH/s eventually.
Other Recent Acquisitions by Galaxy Digital
In addition to acquiring the Helios mining facility, Galaxy Digital has also acquired GK8, a crypto self-custody platform. GK8 was being auctioned off as part of the Celsius bankruptcy process after the defunct crypto lender purchased the firm for $115 million in 2021. Mike Novogratz, CEO of Galaxy Digital, called the acquisition a "crucial cornerstone" in the company's efforts to create a full-service financial platform for digital assets. Galaxy Digital has five business lines: trading, asset management, crypto mining, venture investments, and investment banking. It currently has $1.9 billion worth of assets under management.
