Galaxy Digital Holdings CEO Mike Novogratz has called the Helios mining deal a “transformational acquisition” for the company as it works to increase its exposure to the Bitcoin mining sector.

The cryptocurrency investment firm $65 million acquisition of Argo Blockchain’s flagship mining facility was announced on Dec. 28 as part of Argo’s drastic action to avoid bankruptcy.

Tweeting about the deal on Dec. 29, Novogratz emphasized that Galaxy is a “firm believer” in the long-term future of Bitcoin (BTC) and the company will continue to increase its mining initiatives:

“Bear markets are for building. We are long term believers in BTC and expect lower cost miners to earn over time. Helios is a transformational acquisition that will expand our mining capabilities and services as we continue to build for the decentralized future.”

Since we started mining bitcoins in Q1 2021, we outsource our miners to hosting providers. But we always had the idea to vertically integrate our mining capabilities.

—Mike Novogratz (@novogratz) December 28, 2022

Explaining the deal in more detail, the CEO of the galaxy He highlighted that the firm has a specific “thesis” on how to approach the mining sector: “low-cost electricity, a very efficient team” and “buy cheap ASIC miners”.

“That is a recipe for success in mining, even as the hash rate increases,” he said.

Recent Hashrate Index data found that Bitcoin ASIC miner prices are around the minimum not seen since at least 2021, with the most efficient ASIC miners seeing their prices drop 86.8% from their peak in May 2021.

Galaxy has five business lines across trading, asset management, crypto mining, venture investing, and investment banking. According to his website, he currently has $1.9 billion in assets under management.

As it stands, Galaxy has primarily used hosting services for its mining operations. However, Novogratz notes that owning Helios with a capacity of 200 megawatts (MW) will not only allow the company to run miners on its own site, but to host others as well.

Helios potentially has great scalability to make it one of the largest miners on the market. Argo Blockchain described above in May of this year that it had plans to increase electrical capacity to 800MW in “the next few years”.

At the time, the company also said that it expected Helios to reach a BTC mining capacity of 5.5 exhashes per second by the end of the year, with the potential to eventually reach 20 EH/s.

It looks like Galaxy has some cash to spend in the midst of the 2022 bear market, considering it also provided Argo Blockchain with a $35 million equipment financing loan in conjunction with the acquisition.

Related: BTC Price Holds $16,500, but Funding Rates Increase Risk of New Bitcoin Lows

The move also adds another blow from earlier this month, when Galaxy acquired cryptographic self-custody platform GK8 for an undisclosed fee.

GK8 was being auctioned off as part of Celsius’ bankruptcy proceedings, after the defunct cryptocurrency lender bought the company for $115 million in 2021.

Novogratz called the acquisition a “crucial cornerstone in our effort to create a truly full-service financial platform for digital assets.”