The new company will set operations with the sole intention to mine its cryptocurrencies. The company explained that these are “once in life-time opportunities” at the moment of the announcement.
Cryptocurrency-related investment management and financial services company Galaxy Digital launched a new business unit that focuses its exclusive efforts on bitcoin (BTC) mining. The subsidiary will offer support to the miners who linger in the ecosystem, this support goes to consolidate those miners’ projects.
Galaxy Digital’s new business unit works in two specters: on the first, the company will be a platform that grants advice, loans, and complete risk management to miners. On the other specter, the entity will become an establisher of operations to mine its cryptocurrencies by hosting the equipment in a third-party data center with the United States as a location.
“The new Galaxy Digital Mining business launches in 2021, it integrates already existing business lines, this is to offer business and risk management solutions, as well as core loans and equity investments, advisory services, and acquisitions for bitcoin miners…” The company said in a statement. The subsidiary’s main goal is to adapt to every requirement regarding the mining sector, as it sees the potential and a great set of opportunities in the financial world. According to Chris Ferraro, co-president of Galaxy Digital, the company unleashed a pertinent analysis of the mining market for the last two years; the executive thinks that the moment to enter this business area is now.
Amanda Fabiano will be the Leader
Amanda Fabiano will be the leader of the new organization that will support bitcoin mining. The executive previously led Fidelity Investments’ digital mining businesses. According to Galaxy Digital, Fabiano is an expert in traditional finance and cryptocurrencies and will offer new perspectives to the business model.
The director herself talked about the creation of the new subsidiary, through a message on Twitter, saying: “We are mining that sweet orange coin #bitcoin.” This tweet goes concerning mining activity, Fabiano also stated about her Galaxy Digital duties saying that: By mining their bitcoins the organization understands the industry needs. “By mining ourselves, we can deeply understand and solve the financial needs of miners, while also increasing the strength of the industry and therefore the strength of the Bitcoin network,” said the director.
Bitcoin Mining: A Crescent Business
The total revenue of bitcoin miners went through a considerable increase in the last quarter of 2020 and the first days of 2021.
The daily revenue of miners, from commissions and block rewards during October Last year, was between 10 and 12 million dollars a day. This figure increased in December 2020 and January 2021 reaching the sums of 20 and 45 million dollars. The hash rate or the process of the power of the network also reflects how effective the bitcoin mining activity is. The joint computational capacity already reaches 150 terahashes per second. This is a colossal figure that describes how healthy and active the network is despite the high peaks in price that are hitting the market.
By: Jenson Nuñez