Mike Novogratz’s Galaxy Digital (GLXY) has revealed that it will start Bitcoin mining services to add to its digital asset management services.
The firm’s mining branch Galaxy Digital Mining has been under development since last year. It will manage the new mining service the company wants to launch, according to the announcement.
The company says it will be integrating its existing business lines to “MiFi”, its miner-focused financial services, which includes risk management, investment, and lending offerings.
Armanda Fabiano, former director of mining at Fidelity Investment, will be in charge of the new mining operations.
Fabiano stated that the proprietary mining operation at Galaxy will enable the firm to “deeply understand and solve for the financial needs of miners.”
Galaxy shares doing great
In the past three months, Galaxy’s shares have grown by almost 100%, as it’s now trading at $8.48.
The new Bitcoin mining service will be mining Bitcoin on a proprietary basis. It will also offer financial and expertise services to crypto miners, according to the announcement.
The press release detailing the features of the new mining project stated that Galaxy Digital Mining will be launching this year. It will merge with Galaxy’s already business lines to offer a more comprehensive service to miners and crypto users.
Fabiano will be leading a team of experts with experience in strategic advisory, investment banking, structured products, real asset financing, and non-traditional securitization.
The new Bitcoin mining will solve financial issues
After Galaxy Bitcoin has completely established its BTC operation, it will be hosting its machines and tools at a third-party datacenter in the U.S. “Bitcoin mining is the foundation of the Bitcoin network,” Fabiano pointed out.
She added that the establishment of a mining service will help the company solve the financial issues miners are facing. Also, it will strengthen the Bitcoin network and the Bitcoin industry with the addition of a new mining service to the already existing ones in the industry.
Chris Ferraro, Co-President of Galaxy Digital, has commented on the development. He said the company has seen a massive opportunity in digital asset-backed financing, equipment financing, project financing.
Chief Executive Officer of Galaxy Digital Mike Novogratz has always pointed out a positive outlook for the digital asset industry. Last year, he predicted an upward movement of Bitcoin, and it turned out he was right after all, although Bitcoin has not reached the $100,000 price mark he predicted.
In November, he also said Bitcoin’s price will contract a bit due to the massive influx of high net-worth individuals. Based on the current fundamentals in the Bitcoin market, that prediction is playing out in the market right now.