Galaxy Digital CEO Tags Helios $65M Deal a ‘Transformative Acquisition’

Mike Novogratz, the Chief Executive Officer (CEO) of Galaxy Digital Holdings which plans to acquire flagship facility Helios mining has tagged the deal a “transformative acquisition” for the firm.

This is because Galaxy Digital plans to expand its Bitcoin (BTC) mining operations in the coming year. The brewing bearish market has not deterred the investment management firm from developing its crypto portfolio further.

“Bear markets are for building. We’re long-term believers in $BTC and expect the lowest-cost miners to win over time. Helios is a transformative acquisition that will expand our mining capabilities and services as we continue to build for the decentralized future,” Novogratz tweeted after the agreement to acquire Helios was made a few days ago.

While other mining firms like Core Scientific have bowed to harsh conditions like high electricity costs, low BTC price, and high global hash rate, Galaxy Digital CEO mentioned that they have a strategy.

Novogratz explained that this specific strategy that the firm is leveraging is “low-cost electricity, a very efficient team” and “buying ASIC miners cheap.” In addition, he reiterated that “That’s a recipe for success in mining, even when the hash rate rises.”

Argo Blockchain Repays Debt With Galaxy’s $100M

United Kingdom-based cryptocurrency miner Argo Blockchain recently announced its plan to sell off its flagship mining facility Helios to Galaxy Digital Holdings at $65 million worth. The Helios facility which is located in Dickens County, Texas was sold off due to Argo Blockchain’s inability to finance its operations and ultimately, to avoid bankruptcy. 

As part of their agreement, Argo Blockchain will receive an extra $35 million loan from Galaxy Digital which will be collateralized using 23,619 Bitmain S19J rigs located at Helios and some other equipment located at a few Argo Blockchain data centers in Canada. With the sales of Helios and the additional loan, Argo Blockchain will receive a total of $100 million for Galaxy Digital.

Argo Blockchain’s debt of $84 million from NYDIG and $1 million from North Mull Commercial Finance will be repaid. Once NYDIG’s outstanding loan is paid, Argo Blockchain will receive $6 million in return from the collateral account held by the former.