This Bitcoin miner’s different revenue streams and power deals mean it has much more financial flexibility to thrive
North Sydney, NSW –News Direct– Mawson Infrastructure Group Inc
By Ernest Dela Aglanu, Benzinga
Strong players like Mawson Infrastructure Group (NASDAQ: MIGI ), which has massive excess infrastructure capacity at its disposal, is giving the cryptomining industry some much-needed hope — and assuring investors that they’re fine placed to keep the industry afloat even as companies like Core Scientific Inc. (OTCMKTS: CORZQ) has struggled.
Mawson, from recent reports, has invested and expanded its Bitcoin mining infrastructure. The company has shown long-term resilience in generating revenue from multiple streams, even with other companies going bankrupt.
Different streams of income
With multiple operations across the US and a vertically integrated model based on a long-term strategy to advance the global transition to the new digital economy and a focus on shareholder returns, Mawson has developed an impressive business model that effectively guarantees revenue from three main streams – self-extraction, hosting and energy limitation.
A closer look at Mawson’s three income streams
Self recovery
Mawson mines Bitcoin using its latest generation of ASIC miners. Mawson currently owns more than 20,000 miners, all of which are fully funded.
When electricity costs are low, Mawson concentrates on mining Bitcoin as the margins are strong.
Host Mining
Through its subsidiary Luna Squares, the company says it is strategically positioning itself as a leader in energy-efficient, purpose-built buildings hosting infrastructure designed exclusively for the operation of blockchain-based high-performance computing.
Luna Squares delivers a scalable platform that meets current and future sustainability goals by establishing facilities close to key energy sources, including renewable energy.
According to the January update, hosting co-location installed capacity was 34 megawatts (MW), while hosting co-location revenue was $1.3 million. The total installed capacity across Bitcoin self-mining and hosting co-location was 50 MW.
Hosting is consistent income from Mawson, which helps during periods of higher energy costs or lower Bitcoin costs.
Energy limitation
Energy limitation presents a unique opportunity for companies such as Mawson to reduce energy production due to high power costs or during periods of high demand.
When energy prices are high, Mawson shuts down his Bitcoin mining operation and focuses on energy curtailment income. This can be extremely lucrative. During December, Mawson made over $4 million by shutting down operations for part of the month. No power costs and $4 million in revenue is a significantly strong result for the month.
Income streams that deliver consistent results
The company’s three revenue streams seem to be producing positive results for the company. James Manning, CEO of Mawson Infrastructure, revealed in the company’s January 2023 operational update that “In January, our diversified revenue model continued to deliver, with $1.3 million from our hosting business, $0.6 million from self-recovery and a contribution from the energy market program ours. of $0.3 million.”
Multi-year power agreements
Mawson has performed some perennial power appointments, which offers financial flexibility not available to others; notable among these agreements is a five-year Power Purchase Agreement (PPA) with Energy Harbor for 100% carbon-free energy at the Midland, Pennsylvania, facility.
The company has also partnered with Voltus, a leading software technology platform for distributed energy resources (DER), to deliver up to 100 MW of energy resources to the PJM Interconnection electricity grid.
The company recently took delivery of two 30/40/50 megavolt ampere (MVA) transformers to Mawson’s 100 MW Midland, Pennsylvania site, pushing the digital mining, infrastructure and host company’s electrical infrastructure capacity even higher.
Mawson also has a 120 MW plant in Sharon, PA under construction. The first 12 MW are expected to be online early in Q2 2023.
This article was originally published on Benzinga here.
Mawson Infrastructure Group (NASDAQ: MIGI) is a digital infrastructure provider, with multiple operations throughout the US and Australia. Mawson’s vertically integrated model is based on a long-term strategy to promote the global transition to the new digital economy. Mawson matches sustainable energy infrastructure with next-generation Mobile Data Center (MDC) solutions, enabling low-cost Bitcoin production and on-demand distribution of infrastructure resources. With a strong focus on shareholder returns and an aligned board and management, Mawson Infrastructure Group emerges as a global leader in ESG-focused Bitcoin mining and digital infrastructure.
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Contact information
TraDigital IR – Colette Eymontt
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