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

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

The whole process uses a tremendous amount of electricity. For some context, the Cambridge Center for Alternative Finance (CCAF) estimates that Bitcoin alone consumes about 0.55% of electricity globally.

Time For A Renewable Energy Mix?

There is a belief that introducing a renewable energy mix of wind, solar, nuclear, and hydropower will not only help decarbonization and fight climate change but also help reduce pressure on power grids while improving bitcoin mining profitability.

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

Since 2018 when it was founded, the global digital asset infrastructure company has  demonstrated a commitment to achieving decarbonized mining operations. 

With an industry that is 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 looks to stand out of the bitcoin mining pack.

What Makes Mawson Stand Out?

One key strategy that seems to set this underknown and under-followed company apart from the rest is its diversified model focused on Bitcoin Self-Mining, Hosting Co-location 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 balance sheet risk of marking down revenues). The company has opportunistically moved to lower-priced energy areas in Pennsylvania and has established the financial flexibility of selling back millions of dollars of energy to the grid when it is more profitable than producing Bitcoins for sale. To continue to expand its operations at its two facilities in Pennsylvania, Mawson monetized its development of a mining facility in Georgia.   

Mawson highlights some of the following core activities: 

Mawson Self-Mining: Mawson engages in Bitcoin Self-Mining across its operations.

Hosting Co-location: Mawson leverages its surplus infrastructure capacity to generate an additional revenue stream comprising hosting co-location services.

Mawson Energy Markets Program: Mawson manages its Energy Markets Program through participation in curtailment and energy capacity sales. When energy prices are high and bitcoin prices are low, Mawson sells energy back to the grid. When energy prices are low, Mawson continues to mine for Bitcoin. 

Energy Markets generated unaudited $13.9 million in Q2 of 2022, as per the company’s December update, which is similar to Riot Platforms (formerly Riot Blockchain).

Secure Contracted Low-Cost Energy Pipeline: 

• Low-cost energy infrastructure through securing Power Purchase Agreements (PPA).   
•  The existing energy infrastructure capacity available for Bitcoin Self-Mining and Hosting Co-location is currently over 360 megawatts (MW).

Environmental, Social, And Corporate Governance (ESG) Focus — Net Zero Carbon:

• 22,277 tons of C02 offsets purchased in 2020, 2021 carbon footprint assessed, Verified Carbon Units (VCU) offset pricing underway.
• 24,557 tons of CO2 emissions were avoided through its Energy Markets Program in 2022.
• 100,000 trees were planted in 2022.

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

Highly Experienced Management And Board: 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 across technology, accounting, logistics, and property development.

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Featured Photo by Mawson Infrastructure