- Bitcoin miners seem to be affected by the recent bear market segments of the crypto industry.
- Mawson is engaged in energy demand response programs across its businesses, lowering operating expenses.
- The company is also reducing energy consumption, often known as demand response.
On Tuesday, Mawson Infrastructure Group, a Bitcoin (BTC) mining firm, announced that it had halted major capital expenses until the market improves. Furthermore, the firm is lowering its energy consumption, also known as demand response, as a result of the market sell-off and rising electricity costs due to inflation.
Mawson continues to provide Hosting Co-location services, including its agreement with Celsius Mining LLC. Mawson’s contracts are on a cost-plus basis, and the firm has a good security position. Mawson’s Bitcoin mining facilities are continuing to operate across the United States.
The move comes as Bitcoin miners around the world are feeling the squeeze from the bear market conditions that have gripped the cryptocurrency industry since the beginning of mid-May this year.
In June, Mawson received its final shipment of Canann A1246 ASIC Bitcoin miners, and it has no outstanding payments owing for Bitcoin mining rigs.
Regarding the company’s decision, CEO and founder James Manning said:
Despite an unpredictable market, Mawson is presently ongoing to self-mine and it is taking part in energy demand response programs where relevant. Furthermore, we’re fortunate to possess no outstanding contracts to buy ASIC Bitcoin Miners, enabling us to pay attention to developing our co-location business being an alternate revenue stream as the Bitcoin cost is covered up.
In its most recent monthly update, Mawson revealed that it owned over 40,000 application-specific integrated circuit (ASIC) Bitcoin mining machines. The four rigs are capable of producing a combined 3.35 exahash per second, or about 1.675% of the overall Bitcoin network hash rate. The firm made $19.4 million in total revenue throughout the year, with $6.03 million spent on capital expenses, or acquiring real property and equipment.
The continuing cryptocurrency slump has hit Bitcoin miners particularly hard, with reports suggesting that they sold all of their May harvests. Mining revenues in the industry have dropped to their lowest levels since May 2021. It has been reported earlier that the White House has set its sights on crypto mining energy consumption in the United States.