Mike Novogratz, Galaxy Digital Holdings’ CEO, explained the Helios mining plan and procedure as a “transformative acquisition” for the business as it looks to upsurge its experience in the Bitcoin mining sector.
In a bold move to avoid bankruptcy, Bitcoin miner Argo Blockchain opted to sell its Helios mining facility in Dickens County, Texas, to Galaxy Digital for $65 million, according to a report from Coincu published two days ago.
Then, in a tweet regarding the acquisition on December 29, Galaxy Digital Holdings CEO Novogratz emphasized that the company would maintain expanding its mining operations and that Galaxy is a firm believer in the enduring future of Bitcoin.
Whats in News?
According to the company’s website, the five business sectors in which Galaxy operates include trading, asset management, cryptocurrency mining, venture capital, and investment banking. It also says that the assets it is in charge of managing are currently worth $1.9 billion.
Recently, Galaxy has mostly used its hosting services to support its mining operations. Novogratz points out that the company will be able to host more miners in addition to running its own by owning a 200 MW Helios. Helios could potentially have a large amount of scaling capacity, making it one of the most potent miners currently accessible. Additionally, according to the business, Helios will have the ability to mine Bitcoin at a rate of 5.5 exahashes per second by the end of the year, with the capacity to increase to 20 EH/s in the near future.
The action also builds on Galaxy’s earlier this month win, which included the acquisition of bitcoin self-custody platform GK8 for an undisclosed sum. GK8 was being auctioned off as part of the bankruptcy procedures for the now-defunct cryptocurrency lender Celsius, which had acquired it for $115 million in 2021.
On Wednesday, the first trading day of the brief week that followed the Christmas and Boxing Day holidays, stocks in Toronto were trading down. Every industry in the session was down, with the producer manufacturing, health tech, and process industries being the disproportionate laggards. The S&P/TSX Composite Index for Canada was down 0.90 percent at 19331.99, and the blue-chip S&P/TSX 60 was down 0.88% at 1167.47. After announcing plans to purchase the Helios facility and its associated operations, Galaxy Digital Holdings Ltd.’s stock price fell 3.9% to C$3.41; the company intends to use this as its primary mining operation. A $35 million loan will be given to Argo, it also stated.
Other Market Influencers
According to Franco-Nevada Corp., Minera Panama S.A. is now responding to the Panamanian Ministry of Commerce and Industries’ request to draft a plan to convert the Cobre Panama mine into a care-and-maintenance mode. At 185.76 Canadian dollars, shares were up 0.6%.
Argo is helped by Deal to endure the cold.
The deal is revolutionary, according to Peter Wall, chief executive of Argo, because it benefits the business in numerous other ways. It results in a $41 million (£34 million) reduction in our debt and gives us a stronger financial statement and increased liquidity to support our ongoing business activities. Furthermore, with much-reduced Capex and Opex needs, it enables us to concentrate on streamlining our operations, according to Wall. A total hash rate capacity of 2.5 exahashes per second is produced by Argo’s Bitcoin mining equipment, which is kept. It also avoids having to carry all of the additional weight on the liabilities side of its balance sheet by offloading hosting fees onto a third party.
In recent months, bankruptcy has been a looming concern over the bitcoin mining sector. Rising energy costs and a concomitant decline in mining income have had a significant negative impact on the market, reducing margins and increasing losses. One of the biggest mining companies in the United States, Core Scientific, was one of the most recent two to collapse. Before that, Compute North, which had previously raised $385 million in capital, sought chapter 11 bankruptcy protection in September.
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