Galaxy Digital to create a single-window financial-services hub for Bitcoin miners

Led by Mike Novogratz, Galaxy Digital plans to enter one of the most important sectors of the entire cryptocurrency industry and begin offering financial services to Bitcoin miners.

In an interview The Block Galaxy Digital managing director Ian Taylor said the company intends to establish a kind of single-window for financial services for miners.

This would include capital-market advisory and liquidity provision to help miners convert earned Bitcoin into fiat to sustain their operating activities or expand services.

According to Taylor, Galaxy Digital has more than $400 million on its books, giving the company “a unique opportunity to scale its capital-use capabilities to support clients”.

“Mining is a capital-intensive endeavour, and securing access to equipment may require both forward planning and pre-financing,” he said, noting the potential to leverage Galaxy’s funds, brand, and network of contacts.

Taylor himself will leave the company at the end of the year to pursue a career at Goldman Sachs, but before that he will complete the creation of a mining-focused Galaxy unit. Going forward, it will be led by Amanda Fabiano, who previously worked at Fidelity and joined the firm last week.

The new line of business at Galaxy is being built amid growing ambitions among American companies to carve out a niche in the mining market and to compete with large players such as Bitmain.

One of them is Foundry, a subsidiary of Digital Currency Group (DCG). It also provides consulting, financing and procurement of mining equipment. In August, Foundry stated that it helped acquire roughly half of the mining devices delivered to the United States and Canada this year.

“We are witnessing a hash-rate migration into North America as high-quality, large-scale, and innovative mining projects come online. This rebalancing is a healthy phenomenon for the entire Bitcoin network,” added Taylor.

Earlier it was reported that the American financial giant Charles Schwab began buying shares in the Riot Blockchain mining company. In the same vein, the Vanguard investment fund and Fidelity Corporation are diversifying their portfolios.

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