On Tuesday, Bitcoin (BTC) miner Mawson Infrastructure Group said it was suspending major capital expenditures until market conditions normalized. In addition, the company is voluntarily reducing its energy use, also called demand response, in light of the market sell-off and high electricity prices due to inflation.
Mawson received his latest batch of Canann A1246 ASIC Bitcoin miners in June and has no further outstanding payments for Bitcoin mining equipment. Regarding the company’s decision, CEO and founder James Manning said:
“Despite market volatility, Mawson currently continues to self-mining and also participates in energy demand response programs where applicable. Additionally, we are fortunate to have no pending contracts to purchase Bitcoin ASIC miners. , allowing us to focus on developing our co-location business as an alternative source of income while the price of Bitcoin is low.”
In its latest monthly update, Mawson revealed that he owned more than 40,000 application-specific integrated circuit (ASIC) Bitcoin miners. Combined, the teams have an estimated hash rate of 3.35 exahash per second, which represents approximately 1,675% of the total hash rate of the Bitcoin network. Last year, the company generated $19.4 million in total revenue and spent $6.03 million buying property and more equipment.
The current cryptocurrency bear market has hit Bitcoin miners hard, with news that they sold their entire May harvest. Mining revenues in the sector have since fallen to lows in May 2021. Meanwhile, energy costs have soared, in part due to the fallout from the Russian invasion of Ukraine. Due to this combination of risk factors, the total hash rate of the Bitcoin network has plummeted by almost 25% in the last two weeks alone.
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