On Tuesday, bitcoin (BTC) mining company Mawson Infrastructure Group said it was suspending major capital expenditures until market conditions return to normal. In addition, the firm is voluntarily reducing its energy use, also known as demand response, in light of the market sell-off and higher electricity prices due to inflation.
Mawson received its last shipment of Canan A1246 ASIC bitcoin miners in June and has not paid any further dues for bitcoin mining rigs. CEO and founder James Manning said of the company’s decision:
“Despite the volatile market, Mawson is currently continuing to self-mining and is also participating in energy demand response programs where applicable. Additionally, we are fortunate to have no outstanding contracts to purchase ASIC bitcoin miners. , allowing us to focus on our co-development.-location business as an alternative revenue stream while the price of bitcoin is suppressed.
In its latest monthly update, Mawson revealed that it has over 40,000 application-specific integrated circuit (ASIC) bitcoin miners. Combined, the rigs have an estimated hash rate of 3.35 exhash per second, which is approximately 1.675% of the total hash rate of the bitcoin network. Last year, the firm generated $19.4 million in total revenue and spent $6.03 million in capital expenditures, or purchases of property and equipment.
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The ongoing crypto bear market has hit bitcoin miners hard, with reports suggesting miners have sold off their entire May harvest. Mining revenue in the region has fallen to a May 2021 low. Meanwhile, energy costs have skyrocketed partly because of the result of Russia’s invasion of Ukraine. Due to such a mix of risk factors, the overall hash rate of the bitcoin network has fallen by about 25% over the past two weeks.
