Mike Novogratz's Galaxy Digital has launched into the cryptocurrency mining business with the launch of a new unit that will provide financial products and services to Bitcoin miners.
Nicknamed Galaxy Digital Mining, the unit will be led by former Fidelity Mining Director Amanda Fabiano. The firm described that it will offer services such as trading and risk management, investments and loans, and corporate advice to Bitcoin miners.
Furthermore, the business wing will also be directly involved in Bitcoin mining. It installed its facilities in a third-party data center in the United States.
“Bitcoin mining is the foundation of the Bitcoin network. By mining ourselves, we can deeply understand and solve the financial needs of miners, while enhancing the strength of the industry and thus the strength of the Bitcoin network, ”said Fabiano.
Crypto business diversification
Galaxy is a big name in the crypto industry, known for managing crypto investments. He aggressively grew his business over the years, and his publicly traded shares on the Canadian Stock Exchange soared.
Galaxy's trading business covers a basket of digital assets and has an OTC sales desk to facilitate transactions on behalf of institutional investors.
Last November, the company made two key acquisitions, one is cryptocurrency lender, DrawBridge and the other proprietary trading company, Blue Fire Capital, to diversify its businesses.
He is diving into the crypto mining business as the industry became largely commercialized with the creation of many major mining facilities. Additionally, the recent influx of miners in the United States and Canada has positioned itself well to offer services to the industry.
“We see great 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 using the industry-leading capabilities of Galaxy Digital. Trading, ”Galaxy Co-Chairman Chris Ferraro said.