Galaxy Digital – the financial services provider and cryptocurrency investment manager founded by Mike Novogratz – is committed to gaining a foothold in Bitcoin (BTCmining sector.
After a year of more and more diversify her Products and activities, the company has announced two new forays into the Bitcoin mining industry for 2021. The first project will be a new business unit that Galaxy describes as “a one-stop financial services platform for miners.”
The unit, called Galaxy Digital Mining, is led by Amanda Fabiano – formerly the mining director at Fidelity Investments. In a brief snapshot of her financial services background, Galaxy shares Fabiano’s experience working with nontraditional securitization, real asset financing, structured products, investment banking and strategic advice.
Galaxy’s services for miners will include trading and risk management, investing and borrowing, as well as business advice at the outset. Co-President Chris Ferraro has provided some insight into where Galaxy Digital Mining fits into the company’s overall roadmap:
“We see great opportunities in mining project financing, equipment financing, digital asset backed financing, as well as working capital optimization and hedging solutions.”
In addition to miner-focused financial services, Galaxy Digital Mining has also set up its own Bitcoin mining operation and platforms are reportedly hosted in a third party data center in the United States. Fabiano claimed that the two aspects of the unit’s operations will be complementary, saying that “by mining ourselves, we are able to thoroughly understand and solve the financial needs of miners.”
As previously reported, Galaxy Digital saw a bullish 2020, a reflection of the broader industry’s fortunes and a signal for greater institutional investor participation in crypto. The earnings report for the third quarter showed a 75% year-on-year increase in trading volumes, which it attributed to a growing counterparty base, the launch of its electronic trading platform and the growth of its crypto derivatives business.