Galaxy Digital establishes proprietary Bitcoin mining unit
TL;DR Breakdown:
- Galaxy Digital has launched a new division focused on the Bitcoin mining industry.
- The company intends to mine BTC through the unit while still offering financial services to the miners.
One of the big-name digital assets investment managers, Galaxy Digital, is expanding its cryptocurrency service to include Bitcoin (BTC) mining. The company is stepping into the business through a new division. It intends to start mining BTC on a proprietary basis. Also, the unit will focus on providing financial services, specifically for the cryptocurrency miners. Ultimately, the objective is to further strengthen the BTC mining industry per the company.
Galaxy Digital Mining launches
The new mining unit dubbed “Galaxy Digital Mining” is spearheaded by Amanda Fabiano, the former Director of Bitcoin Mining at Fidelity Investments. Mostly, Fabiano will lead the new division to provide financial services and products for BTC miners. Part of the services mentioned includes risk management, corporate advisory, lending, and equity investing. As the company noted, the services are designed to address the financial needs in the Bitcoin mining industry.
Galaxy Digital also plans to mine Bitcoin through the new unit, to better understand and provide solutions to address the challenges and needs of BTC miners. However, the company said it would only mine the cryptocurrency on a proprietary basis. The Galaxy Digital Mining machines will be hosted in the United States at a third-party datacenter. Fabiano believes that “Bitcoin mining is the foundation of the Bitcoin network.” Hence, they can support the Bitcoin network when attending to the needs of the BTC mining industry.
Galaxy Digital is an active player in the Bitcoin market. In 2019, the company launched two Bitcoin funds, which garnered almost $60 million within a period of one year.
BTC mining in a boom
The new mining unit is coming at the point where Bitcoin miners are bullish, amid the surge in the crypto’s price. According to the Bitcoin network explorer, Blockchain.com, the hashrate has increased significantly since the past month, meaning that more machines are being deployed on the BTC network. Currently, the hashrate is slightly down from the all-time high (ATH) to 150.562 million terahashes per second (TH/s).
