As Bitcoin Rallies, All Eyes Are On Bitcoin Miners: And This Miner Could Benefit From Its Recent Moves

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The Bitcoin Mining sector has breathed a collective sigh of relief over the past three weeks as Bitcoin surged from around $16,500 on December 30 to nearly $23,000 at the time of writing. Many Bitcoin miners have rallied dramatically in response, but concerns remain about the energy consumption required to mine Bitcoin.

The whole process uses a huge amount of electricity. In some context, the Cambridge Center for Alternative Finance (CCAF) estimates that Bitcoin alone consumes around 0.55% of the world’s electricity.

Is it time for a mix of renewable energies?

It is believed that the introduction of a renewable energy mix of wind, solar, nuclear and hydropower will not only contribute to decarbonisation and the fight against climate change, but will also help to reduce the pressure on the electricity networks. while improving the profitability of bitcoin mining.

Thanks to companies like Mawson Infrastructure Group Inc. MIGI, cryptocurrency mining and blockchain technology are beginning to embrace renewable energy like nuclear as their primary source of electricity.

Since its inception in 2018, the global digital asset infrastructure company has demonstrated its commitment to achieving decarbonized mining operations.

With an industry filled with players like Riot Platforms Inc. RIOT, BIT Mining Ltd. BTCM, Hut 8 Mining Corp. HUT, Marathon Digital Holdings Inc. MARA, Bit Digital Inc. BTBT and CleanSpark CLSK, Mawson is looking to break away from the bitcoin mining pack.

What sets Mawson apart?

A key strategy that seems to differentiate this little-known and under-followed company from others is its diverse model focused on Bitcoin self-mining, colocation hosting services, and energy markets.

The company is engaged in the immediate sale of mined coins (not pursuing a HODL strategy of mining and holding Bitcoins to minimize the risk of revenue reduction balance sheet). The company opportunistically moved to low-cost energy areas in Pennsylvania and established the financial flexibility to sell millions of dollars worth of energy back to the grid when it is more profitable than producing Bitcoins for sale. To continue to expand operations at its two facilities in Pennsylvania, Mawson has monetized its development of a mining facility in Georgia.

Mawson highlights some of the following core activities:

Mawson Self-Mining: Mawson engages in self-mining of Bitcoin in all of its operations.

Hosting Colocation: Mawson is leveraging its excess infrastructure capacity to generate an additional revenue stream that includes hosting colocation services.

Mawson’s Energy Markets Program: Mawson manages its energy markets program by participating in energy capacity reduction and sales. When energy prices are high and bitcoin prices are low, Mawson sells the energy back to the grid. When energy prices are low, Mawson continues to mine Bitcoin.

Energy Markets generated an unaudited $13.9 million in the second quarter of 2022, according to the company’s December update, which is similar to Riot Platforms (formerly Riot Blockchain).

Low cost energy pipeline under secure contract:

Low-cost energy infrastructure through securing Power Purchase Agreements (PPAs). The capacity of the existing energy infrastructure available for Bitcoin self-mining and hosting colocation is currently over 360 megawatts (MW).

Net Zero Carbon Environmental, Social and Corporate Governance (ESG) objective:

22,277 tons of C02 offsets purchased in 2020, 2021 carbon footprint assessed, pricing of offsets in verified carbon units (VCU) in progress. 24,557 tons of CO2 emissions were avoided thanks to its Energy Markets program in 2022. 100,000 trees were planted in 2022.

Governance framework: Mawson asserts that a responsible, accountable and ethical approach to corporate governance underpins the way the company does business.

Highly Experienced Management and Board of Directors: The company is managed by a team of industry veterans led by its founder and CEO, James Manning. Manning has 15 years of management experience in technology, accounting, logistics and real estate development.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investment advice.

Featured photo by Mawson Infrastructure

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