The move comes as more miners have begun using alternative sources of funds to support their expansion.Read MoreFeedzy
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.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Bitcoin's price has topped its 50-week average for the first time in 45 weeks, a…
Bitcoin extended a slow climb through the Asian session while regional equities and U.S. stock…
TL;DR VanEck has taken a closer look at dilution inside Metaplanet’s Bitcoin treasury strategy. Its…
Bitcoin Magazine Why Legendary Investor Bill Miller IV has “Never Been More Bullish on Bitcoin”…
Bitcoin Magazine Strategy CEO Phong Le: We Want to Be the JPMorgan of Bitcoin Strategy’s…
Bitcoin Magazine Coinbase Policy Chief: Strategic Bitcoin Reserve Bill Outlook The Clarity Act’s cloture vote…