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Galaxy Digital Forays Into Proprietary Bitcoin Mining

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Billionaire Michael Novogratz's crypto financial services firm Galaxy Digital is set to foray into Bitcoin (BTC) mining after launching a new business unit named Galaxy Digital Mining later in 2021. The new unit will comprise of two activities - a one-stop financial services platform for miners and own proprietary bitcoin mining operation.

Galaxy Digital Mining will offer bitcoin miners with a comprehensive suite of financial services and products including trade and risk management solutions, principal lending and equity investments, and M&A advisory services. Galaxy Digital Mining will also mine bitcoin on a proprietary basis.

The new unit will be led by Amanda Fabiano, who joined Galaxy from Fidelity Investments, where she oversaw the firm's mining investments and initiatives as Director of Bitcoin Mining. The team working alongside her has experience spanning real asset financing, non-traditional securitization, structured products, investment banking and strategic advisory.

While establishing its own proprietary bitcoin mining operation, Galaxy Digital Mining is hosting its mining machines at a third-party datacenter in the U.S. The company said it will be able to deeply understand and solve for the financial needs of miners by running their own mining operations.

"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", said Fabiano.

Galaxy's Co-President, Chris Ferraro, added that they 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 Digital, founded Galaxy Digital in 2017, is a diversified financial services and investment management company in the digital asset, cryptocurrency and blockchain technology sector. Novogratz, Galaxy Digital's founder and CEO, is a former Goldman Sachs partner and hedge fund manager.

In 2019, Galaxy Digital had teamed with Bloomberg LP, the parent of Bloomberg News, to establish the Bloomberg Galaxy Crypto Index, or BGCI to track ten major cryptocurrencies.

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