Galaxy Digital Soars to New Heights with Transformative Helios Acquisition

  • The acquisition of Helios, a provider of blockchain infrastructure and solutions, by cryptocurrency investment firm Galaxy Digital.
  • CEO Mike Novogratz considers the acquisition to be a “transformative” move for the company

Cryptocurrency investment firm Galaxy Digital has made a major acquisition with the purchase of Helios, a provider of blockchain infrastructure and solutions. As it considerably increases Galaxy Digital’s capabilities in the blockchain arena, the merger represents a “transformative acquisition” for the business, according to CEO Mike Novogratz.                                                                                        

Helios, a company founded in 2018, has made a name for itself as a pioneer in supplying services for enterprise blockchain deployments as well as infrastructure for decentralized finance (DeFi) applications.

The flagship mining operation of Argo Blockchain was acquired by the cryptocurrency investment company for $65 million on December 28 as part of Argo’s extreme bankruptcy-prevention measures.

Novogratz stressed that Galaxy is a “big believer” in the long-term future of Bitcoin in a tweet about the deal on December 29 and that the firm will continue to step up its mining initiatives:

“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.”

The Galaxy CEO provided additional details about the agreement, including the company’s “thesis” on how to approach the mining industry, which includes “low-cost electricity, a very efficient crew,” and “purchasing ASIC miners at a low price.”That’s a recipe for mining success, he said, even as hash rates increase.

The most effective ASIC miners have seen their prices drop by 86.8% from their peak in May 2021, according to recent data from Hashrate Index, which shows that Bitcoin ASIC miner costs are currently hanging around lows not seen since at least 2021.

Trading, asset management, cryptocurrency mining, venture capital, and investment banking are among Galaxy’s five business segments. Its website states that it is now managing assets worth $1.9 billion. Galaxy’s mining operations as of late have primarily relied on hosting services. However, Novogratz points out that by owning a 200 MW Helios, the corporation will be able to host additional mines in addition to operating its own.

One of the largest miners on the market, Helios may have a lot of room for growth. Argo Blockchain had stated in May of this year that it had ambitions to raise power capacity to 800MW in “the next years.” At that time, the company also stated that it anticipated Helios to eventually reach a BTC mining capacity of 20 EH/s and reaches 5.5 exahashes per second by the end of the year.

Considering that Argo Blockchain received a $35 million equipment finance loan from Galaxy along with the acquisition, it would appear that the company has some money to burn during the bear market of 2022. The action builds on Galaxy’s past success, which came after it paid an unknown sum to acquire the cryptocurrency self-custody platform GK8. After the failed cryptocurrency lender acquired the company for $115 million in 2021, GK8 came up for auction as part of the Celsius bankruptcy process.

The acquisition, according to Novogratz, is “a vital cornerstone in our endeavor to build a genuinely full-service financial platform for digital assets.” The business is in a strong position to continue growing and succeeding in the years to come with the addition of Helios’ knowledge and technology.