Mike Novogratz. Source: CNBC
Mike Novogratz – the CEO of Galaxy Digital – praised his company’s decision to purchase the bitcoin mining facility – Helios.
The firm recently won the auction to acquire another cryptocurrency entity – the blockchain cybersecurity platform GK8.
In a recent tweet, Novogratz justified the Helios’ acquisition with the fact that Galaxy Digital is a “long-term” believer in bitcoin. He also thinks lowest-cost BTC miners will prevail in the future, while the current crypto winter is an ideal time to ink such deals.
Argo Blockchain – a distressed BTC mining organization – recently agreed to sell its Helios facility to Galaxy Digital for $65 million and thus avoid filing for bankruptcy protection. Novogratz’s firm will host the mining fleet of Bitmain S19J Pros, while Argo will remain an owner of the machinery.
The miner also secured a new asset-backed loan worth $35 million from Galaxy Digital that should be repaid in three years.
Galaxy Digital recently won the bid to buy GK8 – a crypto custody platform previously owned by the bankrupt Celsius Network.
CEO Lior Lamesh and CTO Shahar Shamai remained part of the firm and will lead Galaxy’s new custodial operations. The former commented:
“With the backing of Galaxy, we aim to introduce new and exciting offerings to the industry that showcase a combination of Galaxy’s best-in-class services and GK8’s cryptography, security, and unparalleled R&D skills.”
Despite the recent acquisitions, Galaxy Digital has had a bumpy ride over the past several months. The firm recorded a net comprehensive loss of over $110 million in Q1, 2022, due to the cryptocurrency market crash.
The financial services company was rumored to reduce the size of its team by up to 20% in November. Thus, it would have joined the likes of multiple cryptocurrency organizations which dismissed employees this year, including Coinbase, Gemini, Huobi, BlockchainCom, BitMEX, Bybit, and more.
The FTX fiasco also caused severe financial damage to Galaxy Digital, which held more than $76 million worth of exposure to the bankrupt exchange.