Mike Novogratz: Galaxy Acquisition of Helios - A Transformative Move
Galaxy Digital Holdings CEO Mike Novogratz described Galaxy Digital's $65 million acquisition of Argo Blockchain's flagship mining facility, known as the Helios, as a "transformative acquisition" for Galaxy Digital as it aims to expand its Bitcoin mining business. Argo Blockchain's efforts to avoid bankruptcy led to the acquisition, which was announced on December 28.
Novogratz tweeted about the deal on December 29 and stressed that Galaxy Digital was a "strong believer" in Bitcoin's long-term prospects.
“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,” he said.
Argo Blockchain, a troubled Bitcoin mining company, recently sold its Helios mining facility for $65 million to Galaxy Digital to prevent its bankruptcy. It is agreed that Argo will maintain ownership of Bitmain S19J Pros at the site, whereas Galaxy Digital will operate them. Galaxy Digital also provided Argo with a $35 million asset-backed loan to repay within three years.
Galaxy Digital has faced challenges, including a net loss of $110 million in Q1 2022 and rumors of layoffs. The company also suffered financial damage due to its exposure to the failed FTX exchange.
The financial services company was reported to be reducing its workforce by up to 20% in November. Coinbase, Bybit, Gemini, BitMEX, Huobi, BlockchainCom, and other cryptocurrency companies have also laid off employees this year.
CBW - External Analyst