Mawson Infrastructure Group Reports An Important Year in Review

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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 Inc. MIGI reported a growth spurt in 2021.

Despite the volatility of the cryptocurrency market, the company’s Bitcoin (BTC) mining and digital asset management operations have ushered growth in both revenue and gross profit for the third quarter of 2021. With the new year just around the corner, Mawson reflects on the long list of endeavors that brought these things about.

The company believes that of the most notable of these was the initial public offering (IPO) that placed Mawson on the Nasdaq in September. The operation brought in an additional $45 million in funding, increasing the total amount raised to $120 million. Soon after its IPO, Mawson reached a market capitalization of $900 million.

The funding efforts are reportedly part of Mawson’s plan to increase its processing rate to 3.35 exahash per second (EH/s) by the second quarter of 2022, amounting to approximately 18 Bitcoin mined per day. Mawson plans to further increase its processing rate to 5 EH/s by early in the first quarter of 2023, producing approximately 28 Bitcoin per day, and is fully funded to do so.

Mawson’s processing rate currently is set at 0.8 EH/s, which allows the company to mine approximately 4.5 Bitcoin a day. In an active effort to meet its goals, Mawson purchased tens of thousands of mining machines on more than one occasion in 2021, bringing the total to more than 40,000, according to Chief Commercial Officer Nicholas Hughes-Jones.

Aside from these efforts, Mawson signed an agreement to purchase a new 100-megawatt (MW) facility in Pennsylvania, attended key conferences around the globe, and started the 100MW expansion of its mining facility in Sandersville, Georgia, which will be used to build an alternative revenue stream through hosting services.

To add to this initiative, Mawson acquired Luna Squares LLC, which provides wholesale hosting solutions for medium- to large-scale mining operations throughout the U.S. Luna is part of a tri-faceted portfolio to diversify Mawson’s revenue stream. Mawson’s Distributed Storage Solutions, for example, is a minority shareholding in a business focused on mining Filecoin (FIL), and its Cosmos Global Digital Miners Access ETF (DIGA) provides investors with a vehicle to speculate on global digital asset miners via its Bitcoin Miner ETF listed in Australia.

How Does Mawson’s Growth Compare With Competitors? 

In a recent press release, Mawson reported some of its financials for the third quarter of 2021. Its revenue of $10.9 million was a 1,100% increase over the same time period last year, and its gross profit increased by slightly more than 100% as well.

Bit Digital Inc. BTBT, for example, grew its revenue from roughly $7 million to $21 million between 2017 and 2020, representing an annual revenue growth rate of 100%. Despite this growth in revenue, however, Bit Digital’s gross profit remained relatively stable in this time period at year-end.

A further look into other financial statements from up-and-comers Bit Mining Ltd. BTCM and Canaan Inc. CAN shows that both companies also increased gross profit, but by smaller amounts even as crypto prices have fluctuated.

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.