Galaxy Digital CEO Michael Novogratz appeared on CNBC’s ‘Squawk Box’ to discuss the company’s massive capacity expansion in Texas, regulatory processes in Washington, and the banking sector’s resistance to cryptocurrency.
Crypto financial services and investment management giant Galaxy Digital has received approval to increase the capacity of its Helios data center in Texas to over 1.6 gigawatts. The company’s founder and CEO, Michael Novogratz, explained what this development means for both Galaxy and its artificial intelligence (AI) infrastructure.
Novogratz argued that Helios, which they acquired in 2022 as a Bitcoin mining facility, has today transformed into a massive energy hub driven by the need for artificial intelligence computing power.
Referring to his meetings in Washington, the renowned CEO expressed optimism that the bill regulating the cryptocurrency market could become law within the next few weeks. Stating that both Democrats and Republicans have shown serious commitment to this, Novogratz argued that perfection shouldn’t be sought in the law, but that it should be passed as soon as possible to pave the way for the sector’s growth.
Novogratz stated that one of the biggest obstacles to regulation is the lobbying activities of banks, drawing particular attention to the “stablecoin” debates. Saying that banks are concerned about deposits shifting to the crypto system, the CEO made a striking observation:
“Currently, banks are making significant profits by earning 3-4-5% interest from the FED on our savings while giving consumers very low interest rates. The potential for stablecoins to offer interest-bearing returns challenges this monopoly of banks. However, we must pass this law; even if it’s not perfect, it’s essential for the growth of the sector.”
*This is not investment advice.
