The Competitive Edge: A Look at Mawson Infrastructure Group's Operations in Sandersville, Georgia

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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Mawson Infrastructure Group MIGI is expanding operations at its state-of-the-art facility in Sandersville, Georgia. The move comes after raising $37 million in a recent private offering in public equity (PIPE) earlier this year. The company prides itself in raising capital in a disciplined manner, only raising what it needs to strategically grow at opportune times. Directors and Management own approximately 30% of the business, so they have a very sharp focus on shareholder returns.

CEO James Manning says the company’s approach has allowed it to be highly efficient with the capital it has raised to date.

“We have also been diligent in the way we purchase additional ASIC bitcoin mining hardware, remaining patient for the correct moment in time to add to our mining fleet,” Manning said.

This influx of capital allows the company to build out additions to its Georgia facility, greatly increasing its Bitcoin mining abilities. Mawson has purchased over 30,000 miners, and will have 3000PH online by Q2 2022, with a target of 5000PH by early 2023. The site is a prime location for mining operations with a power mix that is more than 80% renewable, non-carbon emitting and with an average power cost of just 3.5 cents per kilowatt-hour (kWh), making it one of the lowest costs of energy amongst the listed bitcoin mining peers. 

Expanding Capacity

Construction is underway and is currently in the 2nd of 3 phases, with 100MW available by Q4 2021, and with an expansion target of up to 400MW in 2023. When finished, the facility will have a 400-megawatt capacity — a massive increase over its current level. With this, Mawson will be able to fully deploy all of the 30,000+ ASICs it recently purchased from manufacturer Canaan Inc. CAN, with plenty of room left over for additional PH growth in 2022.

Efficiency is Key

Mawson is committed to efficient deployment of its assets and boasts more than an 80% operating margin at the facility. Central to this is the company’s use of modular data centers (MDCs). The company developed MDCs to allow it to expand operations quickly and cost-effectively. 

The MDCs are highly modified shipping containers. Each has a 2.5 MW capacity and can hold 588 ASICs. They are built at an extremely low cost, they’re mobile, and they can be deployed very quickly. This is what allows Mawson to keep its cost per MW deployed so low. 

Hosting Abilities

In addition to increasing its mining capacity, the Sandersville facility will greatly increase Mawson’s hosting capabilities. Currently, the company has 3 hosting customers and is looking to expand on that given the very large demand for hosting. When phase 3 is complete, the site is expected to have a 100 MW hosting capacity. The company expects annual revenue of $52.5 million from hosting alone, with a GP of $17.5M. 

Once phase 3 is complete and the site is fully operational, Mawson will be a major player in the field, competing with the likes of Riot, Core Scientific and Marathon. And with the efficiency of its operations and commitment to environmental, social and governmental (ESG) efforts, Mawson presents a very attractive opportunity for investors.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.