Bitcoin Miner Mawson Signs 100MW Hosting and Debt Deal With Celsius Mining

Mawson will also receive a $20 million loan from Celsius in exchange for 3.85 million warrants in Mawson.

AccessTimeIconMar 1, 2022 at 4:37 p.m. UTC
Updated Mar 1, 2022 at 4:45 p.m. UTC

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

Bitcoin miner Mawson Infrastructure (MIGI) has signed a new 100 megawatt (MW) co-location deal with Celsius Mining, a subsidiary of crypto lending firm Celsius Networks, that entails Celsius providing a data center to host mining equipment.

  • The first mining hardware under the new deal will be deployed at the end of the first quarter and will bring the hosting co-location agreements with Mawson’s subsidiary, Luna Squares, to about 102MW, according to a statement.
  • The deal will make Celsius the “largest co-location customer” for Mawson, said CEO and founder James Manning, adding that the industry is experiencing a shortage of energy and energy infrastructure while demand and inbound inquiry for hosting continues to rise.
  • Celsius also loaned $20 million to Luna Squares for the purpose of funding the infrastructure required to meet the obligations of the co-location deal, according to a Securities and Exchange Commission filing.
  • Additionally, Mawson issued Celsius 3.85 million warrants, each of which is exercisable for one share of common stock at $6.50.
  • Mawson reiterated its guidance for reaching self-mining power of of 3.35 exahash per second (EH/s) by the second quarter of this year, and a target of 5 EH/s online by early Q1 2023
  • On Feb. 15, Mawson said it produced 140 bitcoins in January and expects its monthly hashrate to rise 23% to 1.35 EH/s by the end of February.
  • Mawson’s shares are down more than 7% while bitcoin (BTC) neared $44,000 and other mining peers are mostly positive on Tuesday.

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Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

CoinDesk - Unknown

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets