Mawson Infrastructure Group Inc. Executes Another Customer Co-Location Agreement
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The co-location agreement between Mawson Infrastructure Group Inc. and Faith Technologies Incorporated represents a strategic move in the digital infrastructure space, particularly within the cryptocurrency mining sector. Co-location services, where multiple customers can house their mining equipment in a provider's facility, are becoming increasingly popular due to the cost-efficiency and operational benefits they offer over private mining setups.
This agreement signifies Mawson's commitment to diversifying its revenue streams and enhancing its service offerings. By onboarding multiple co-location customers, Mawson is not only expanding its customer base but also mitigating the risk associated with the volatile nature of cryptocurrency markets. The ability to host 1,176 miners, or approximately 4 MW, is a considerable addition to Mawson's capacity and the option for future expansion indicates potential for further growth.
For investors, the diversification of Mawson's co-location business could imply a more stable and predictable revenue stream, which is crucial in an industry known for its rapid changes. Additionally, the operational and technological enhancements mentioned by the CEO suggest that Mawson is investing in improving its competitive edge, which could lead to increased efficiency and potentially higher profit margins in the long run.
The mention of FTI's modular data centers and their application in the renewable energy space is noteworthy. As the global push for sustainability intensifies, companies that can integrate renewable energy solutions into their operations are likely to benefit from both regulatory support and a growing market demand for 'green' data services.
Mawson's anticipated total operating capacity of 100 MW, with a combined potential for self-mining and co-location fleets, positions the company as a significant player in the digital infrastructure industry. The scale of operations, with approximately 32,930 miners and 3.8 EH/s, underscores the company's ambition to capitalize on the growing demand for cryptocurrency mining infrastructure.
From an energy perspective, the ability to successfully operate a large-scale mining operation while integrating renewable energy solutions could set a precedent in the industry and attract environmentally conscious investors. This could also potentially lower operational costs in the long term, given the rising prices and regulatory pressures associated with traditional energy sources.
The financial implications of the new co-location agreement for Mawson Infrastructure Group Inc. are multifaceted. By securing a third co-location customer agreement, Mawson is demonstrating its ability to attract and maintain client relationships, which is crucial for steady cash flow generation. The potential for future capacity expansion with FTI provides an avenue for scaling operations and increasing revenue.
Investors should consider the long-term financial health of Mawson in the context of the digital infrastructure industry's growth trajectory. The operational enhancements and increased platform capabilities mentioned by Mawson's CEO suggest that the company is positioning itself to take advantage of the burgeoning demand for cryptocurrency mining infrastructure.
However, it is essential to remain cognizant of the inherent risks associated with the cryptocurrency industry, such as regulatory changes and price volatility, which can impact the profitability of mining operations. The company's diversification into co-location services could be seen as a strategic hedge against these risks.
New Customer Agreement for Approximately 4 MW or 1,176 miners
With Option for Expansion
Continued Customer Onboarding in Co-Location Business
and Develops Multi-Customer Base for Company’s Capabilities
PITTSBURGH, Feb. 06, 2024 (GLOBE NEWSWIRE) -- Mawson Infrastructure Group Inc. (NASDAQ:MIGI) (“Mawson” or the “Company”), a digital infrastructure company, is pleased to announce that the Company has signed a new co-location agreement between a wholly-owned subsidiary of Mawson and a wholly-owned subsidiary of Faith Technologies Incorporated (FTI).
The new customer co-location agreement is for Mawson to provide FTI with co-location services for approximately 1,176 miners or approximately 4 MW at Mawson’s Midland, Pennsylvania facilities with future potential capacity expansion with Mawson upon mutual agreement.
The FTI customer co-location agreement is the third co-location customer agreement executed by Mawson since the start of Q4, 2023, which develops a multi-customer base for Mawson’s co-location business and also provides for additional growth opportunities for Mawson capabilities and business.
Rahul Mewawalla, Mawson’s CEO and President, commented, “We are delighted to sign and are excited to welcome our third co-location customer since as recently as the start of Q4, 2023, which continues our successful build of a growing multi-customer base for Mawson’s co-location business. We have been pleased with our recent operational and technological enhancements across our self-mining and co-location businesses, and our increased overall platform capabilities as we look to 2024 ahead.”
Pat McGettigan, Executive Vice President of FTI, stated, “We are pleased to deepen our partnership with Mawson by becoming a customer of Mawson’s co-location business and their platform capabilities. We also appreciate the opportunity to continue to supply our modular data centers and demonstrate their capabilities and application in the renewable energy space.”
Mawson anticipates its Midland facilities operating at a total capacity of 100 MW with the combined potential for self-mining and co-location fleets at its Midland facilities comprising approximately 32,930 miners and 3.8 EH/s. In addition to its facilities at Midland, Mawson has another site located in Bellefonte, Pennsylvania, which is used entirely for self-mining purposes. As of the end of 2023, the Bellefonte facility was operating at approximately 8.8 MW of capacity. With self-mining and the total co-location platforms combined, Mawson’s facilities are expected to have a capacity of about 109 MW and about 35,650 miners along with a total hashing capacity of approximately 4.0 EH/s.
About Mawson Infrastructure
Mawson Infrastructure Group (NASDAQ: MIGI) is a digital infrastructure company. Mawson’s vertically integrated model is based on a long-term strategy to promote the global transition to the new digital economy. Mawson aligns digital infrastructure, sustainable energy, and next-generation fixed and mobile data center solutions, enabling efficient Bitcoin production and on-demand deployment of digital infrastructure assets. Mawson Infrastructure Group is emerging as a global leader in ESG focused digital infrastructure and Bitcoin mining.
For more information, visit: https://mawsoninc.com/
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Mawson cautions that statements in this press release that are not a description of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words referencing future events or circumstances such as “expect,” “intend,” “plan,” “anticipate,” “believe,” and “will,” among others. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon Mawson’s current expectations and involve assumptions that may never materialize or may prove to be incorrect. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, which include, without limitation, the possibility that Mawson’s need and ability to raise additional capital, the development and acceptance of digital asset networks and digital assets and their protocols and software, the reduction in incentives to mine digital assets over time, the costs associated with digital asset mining, the volatility in the value and prices of cryptocurrencies and further or new regulation of digital assets. More detailed information about the risks and uncertainties affecting Mawson is contained under the heading “Risk Factors” included in Mawson’s Annual Report on Form 10-K filed with the SEC on March 23, 2023, and Mawson’s Quarterly Report on Form 10-Q filed with the SEC on May 15, 2023, August 21, 2023, November 13, 2023, and in other filings Mawson has made and may make with the SEC in the future. One should not place undue reliance on these forward-looking statements, which speak only as of the date on which they were made. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Mawson undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as may be required by law.
Investor Contact:
Sandy Harrison
Chief Financial Officer
IR@mawsoninc.com
FAQ
What is the new co-location agreement for Mawson Infrastructure Group Inc. (NASDAQ:MIGI)?
How many co-location customer agreements has Mawson executed since the start of Q4, 2023?
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