Bitcoin Miner Mawson Exchanges Mining Rigs for Stake in Tasmanian Data Center
The move comes as more miners have begun using alternative sources of funds to support their expansion.
Jun 7, 2022 at 4:05 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/TW4VIUXGPFGLTIRHEZ7XW7GWAQ.jpg)
Mawson is exchanging roughly 1,975 bitcoin mining rigs for a stake in Tasmania Data Infrastructure. (Shutterstock)
Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets
Australian bitcoin miner Mawson Infrastructure Group Inc. (MIGI) has taken a 33% stake in Tasmania Data Infrastructure (TDI) in exchange for about 1,975 bitcoin mining rigs.
- TDI is developing a data center in Tasmania, Australia, to mine bitcoin (BTC) with 100% renewable energy and will have up to 35 megawatts (MW) of energy infrastructure available in the third quarter, with expansion capacity in excess of 100MW, according to a statement.
- “By exchanging a portion of our ASIC Bitcoin Mining fleet for an equity position in TDI, we have continued to demonstrate our capital discipline whilst obtaining a meaningful equity position in one of Australia’s largest emerging, 100% renewable energy bitcoin miners,” said Mawson CEO and founder James Manning.
- The move comes as miners are becoming increasingly conservative with their capital spending amid the plunge in cryptocurrency prices. Many have begun tapping alternative sources of funds to help their businesses grow, including selling their mined digital assets to pay for operating expenses.
- As part of the deal, Mawson will have the right to host up to 10MW of its own bitcoin mining infrastructure at the site and provide TDI a license to utilize Mawson’s Modular Data Center (MDC) and associated technology.
- The shares of Mawson outperformed mining peers today, rising more than 7%. However, the stock has fallen about 67% this year, in line with the performance of other public mining companies.
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Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets
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Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets
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