This Bitcoin Miner's Diverse Revenue Streams And Power Agreements Mean It Has A Lot More Financial Flexibility To Thrive

Strong players like Mawson Infrastructure Group MIGI, which has large-scale excess infrastructure capacity at its disposal, are giving the crypto mining industry some much-needed hope – assuring investors that they are well positioned to keep the industry afloat even as companies like Core Scientific Inc. CORZQ have struggled.

Mawson, from recent reports, has been investing and expanding its Bitcoin mining infrastructure. The company has shown long-term resilience in the generation of revenue from multiple streams, even with other companies going bankrupt.

Diverse Revenue Streams

With multiple operations throughout the US and a vertically integrated model based on a long-term strategy to promote 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-mining, hosting and energy curtailment.

A Closer Look At Mawson’s Three Revenue Streams

Self-Mining

Mawson mines Bitcoin using its latest generation ASIC miners. Mawson currently owns more than 20,000 miners, which are all fully funded. 

When power 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 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 targets by establishing facilities close to key energy sources, including renewables.

According to the January update, the 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 totaled 50 MW.

Hosting is consistent revenue from Mawson, which helps during periods of higher energy costs or lower Bitcoin costs. 

Energy Curtailment

Energy curtailment presents a unique opportunity for companies like Mawson to reduce energy production because of high power costs or during periods of peak demand. 

When energy prices are high, Mawson shuts down it’s Bitcoin mining and focuses on Energy Curtailment revenue. This can be extremely lucrative. During December, Mawson made over $4 million USD from turning off operations for part of the month. No power costs and $4 million in revenue is a significantly strong result for the month. 

Revenue Streams Delivering Consistent Results

The company’s three revenue streams seem to be yielding positive results for the company. James Manning, Mawson Infrastructure CEO, 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 operations, $0.6 million from Self-Mining and a contribution from our Energy Markets Program of $0.3 million.”

Multi-Year Power Agreements

Mawson has executed some multi-year power agreements, which offer it 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 distributed energy resource (DER) software technology platform, to deliver up to 100MW of energy resources to the PJM Interconnection electricity grid.

The company recently took delivery of two 30/40/50 megavolt amperes (MVA) transformers to Mawson’s 100 MW Midland, Pennsylvania site, pushing the digital mining, infrastructure, and hosting company’s electrical infrastructure capacity even higher.

Mawson also has a 120 MW facility in Sharon, PA which is under construction. The first 12 MW are expected to be online in early Q2, 2023. 

Featured Photo by photocreo on Elements Envato

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