Mawson Infrastructure Group Restricts Mining Amid Sluggish Crypto Market

Crypto mining ventures, limit operations amidst a sluggish market. (photo: doc. pixabay)

JAKARTA - On Tuesday, June 28, Bitcoin (BTC) mining company, Mawson Infrastructure Group, announced that it is now suspending major capital outlays until crypto market conditions return to normal.

In addition, companies are voluntarily reducing their energy use, which is also called demand response, given the sell-off in the market and high electricity prices due to inflation.

Mawson took delivery of the last Canann A1246 ASIC Bitcoin Miners in June and has no further outstanding payments for the Bitcoin mining rig.

“Despite the volatile market, Mawson currently continues to mine on its own and also participates in energy demand response programs where applicable. Additionally, we are fortunate to have no pending contract to purchase ASIC Bitcoin Miners, allowing us to focus on developing our partner,” said Mawson CEO and founder, James Manning, as quoted by Cointelegraph.

In its latest monthly update, Mawson reveals that they have more than 40,000 Application-Specific Integrated Circuit (ASIC) Bitcoin mining machines. Combined, the rig has an estimated hash rate of 3.35 exahashes per second, accounting for approximately 1.675% of the Bitcoin network's total hash rate.

Last year, the company generated total revenues of US$19.4 million (Rp 287 billion) and spent US$ 6.03 million (Rp 89.4 billion) on capital expenditures, or buying property and equipment.

The ongoing cryptocurrency bear market has hit Bitcoin miners hard. It is even reported that miners are now selling off their entire May harvest. Mining revenues in the sector have continued to plummet, ever since Bitcoin price plunged to lows in May 2021.

Meanwhile, energy costs have skyrocketed in part due to the impact of Russia's invasion of Ukraine. Due to such a mix of risk factors, the Bitcoin network's total hash rate has fallen by almost 25% in the last two weeks alone.