Bitcoin Mining Firm Mawson to Suspend all Major Capital Expenditures
- Mawson is involved in demand response to reduce its energy consumption in the wake of high electricity prices owing to inflation.
- Mawson received its final shipment of Canann A1246 ASIC Bitcoin Miners this month and has no outstanding payments due for Bitcoin mining rigs.
On Tuesday, Leading Bitcoin (BTC) mining company Mawson Infrastructure Group announced the suspension of major capital expenditures until market conditions normalize. According to the official announcement, Mawson received its final shipment of Canann A1246 ASIC Bitcoin Miners this month and has no outstanding payments due for Bitcoin mining rigs.
The mining company is also involved in a demand response to reduce its energy consumption in the wake of high electricity prices due to inflation. Demand response is a strategy mainly used by electric utility firms to shift or reduce energy consumption from peak hours of the day when the demand for electricity is the greatest to learner demand periods.
Describing the decision to suspend all major capital expenditures as “Sensible,” Mawson CEO James Manning stated that the firm is currently continuing to self-mine and is also participating in energy demand response programs where applicable.
He further added that they are fortunate to have no outstanding contracts for the purchase of ASIC Bitcoin Miners, enabling them to focus on the development of their co-location business as an alternate revenue stream while BTC price is suppressed. “Our largest customer, Celsius Mining LLC, continues to perform as expected as we scale up their deployment. The decision to defer any major expansion CAPEX in the current market environment is the sensible decision until market conditions normalize”, added James.
In its latest monthly update, Mawson disclosed that it owned more than 40,000 Application-Specific Integrated Circuit (ASIC) Bitcoin mining machines. In 2021, the mining giant generated USD 19.4 million in total revenue and spent around USD 6.03 million in capital expenditures or purchasing property and equipment.
Bitcoin Miners have been hit hard by the current market volatility and a bear market. According to The Block Research, Bitcoin mining revenues fell in May by 21.6%. Last month, miners brought in about US$906.2 million in revenue. Compared to October 2021, that’s an even bigger drop of nearly 47%. Monthly revenues have generally decreased since putting crypto miners in a tough spot.