Mike Novogratz’s Galaxy Digital has jumped into the cryptocurrency mining business with the launch of a new unit that will provide financial services and products to Bitcoin miners.
Dubbed Galaxy Digital Mining, the unit will be led by Fidelity’s former director of mining, Amanda Fabiano. The firm described that it will offer services like trading and risk management, investing and lending and corporate advisory to Bitcoin miners.
Additionally, the business wing will directly engage in Bitcoin mining as well. It set up its facility in a third-party datacenter in the United States.
“Bitcoin mining is the foundation of the Bitcoin network,” Fabiano said. “By mining ourselves, we are able to deeply understand and solve for the financial needs of miners, while also enhancing the strength of the industry and thus the strength of the Bitcoin network.”
Diversifying Crypto Businesses
Galaxy is a big name in the cryptocurrency industry, known for managing crypto investments. It aggressively grew its business over the years, and its publicly-listed shares on the Canadian exchange skyrocketed.
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Galaxy’s trading business covers a basket of digital assets and runs an OTC sales desk to facilitate trades on behalf of institutional investors.
Last November, the company made two key acquisitions, one is crypto lender, DrawBridge and the other proprietary trading firm, Blue Fire Capital, to diversify its businesses.
It is diving into the crypto mining business when the industry commercialized heavily with the setting up of many major mining facilities. Additionally, the recent influx of miners in the United States and Canada positioned itself well to offer services to the industry.
“We see major opportunities in mining project financing, equipment financing, digital asset-backed financing, as well as working capital optimization and hedging solutions for mine operators and investors utilizing Galaxy Digital Trading’s industry-leading capabilities,” Galaxy’s Co-President, Chris Ferraro, said.