Bitcoin (BTC) mining company Mawson Infrastructure Group said on Tuesday, that it will be suspending all major capital expenditures until market conditions normalize, considering that the bear market is disturbing all segments of the crypto industry, including Bitcoin miners, which have seen their revenues decline sharply this year. The firm is also voluntarily reducing its energy use, as the demand response, in light of the market sell-off and high electricity prices due to inflation.
In June Mawson received its final shipment of Canann A1246 ASIC Bitcoin Miners and has no further due payments for Bitcoin mining rigs. CEO and founder James Manning supports the company’s decision, and said:
“Despite a volatile market, Mawson is currently continuing to self-mine 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, enabling us to focus on developing our co-location business as an alternate revenue stream while the Bitcoin price is suppressed.
Mawson revealed in its latest monthly update, that it owned over 40,000 Application-Specific Integrated Circuit (ASIC) Bitcoin mining machines. Collectively, the rigs have an estimated hash rate of 3.35 exahash per second, accounting for approximately 1.675% of the Bitcoin network’s total hash rate. The firm last year produced$19.4 a million in total revenue and spent $6.03 million in capital expenditures, or purchasing property and equipment.
The current cryptocurrency bear market has hit Bitcoin miners hard, with reports that miners sold their May harvest entirely. The sector’s Mining revenues have since fallen to May 2021 lows. In the meantime, energy costs have hit the roof partly due to the fallout of Russia’s invasion of Ukraine. Due to such a mixture of risk factors, the Bitcoin network’s total hash rate has jumped nearly 25% in the past two weeks alone.
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