With A Growing Short Supply Of Crypto Mining Infrastructure, Can Mawson’s Large-Scale Excess Capacity Provide Hope For The Industry?

Ad blocking detected

Thank you for visiting CanadianInsider.com. We have detected you cannot see ads being served on our site due to blocking. Unfortunately, due to the high cost of data, we cannot serve the requested page without the accompanied ads.

If you have installed ad-blocking software, please disable it (sometimes a complete uninstall is necessary). Private browsing Firefox users should be able to disable tracking protection while visiting our website. Visit Mozilla support for more information. If you do not believe you have any ad-blocking software on your browser, you may want to try another browser, computer or internet service provider. Alternatively, you may consider the following if you want an ad-free experience.

Canadian Insider Ultra Club
$500/ year*
Daily Morning INK newsletter
+3 months archive
Canadian Market INK weekly newsletter
+3 months archive
30 publication downloads per month from the PDF store
Top 20 Gold, Top 30 Energy, Top 40 Stock downloads from the PDF store
All benefits of basic registration
No 3rd party display ads

* Price is subject to applicable taxes.

Paid subscriptions and memberships are auto-renewing unless cancelled (easily done via the Account Settings Membership Status page after logging in). Once cancelled, a subscription or membership will terminate at the end of the current term.


Learn More about Mawson Infrastructure Group, Inc by gaining access to the latest research report

A recent avalanche of news reports about major cryptocurrency players filing for bankruptcy could take a toll on the industry, which is already battling price uncertainties. These stories could indicate that the rout in cryptocurrency prices may be weighing heavily on companies.

Bankruptcies In The Industry

The sector has recently received shocking news stories of Bitcoin (CRYPTO: BTC) miner Core Scientific Inc. (NASDAQ: CORZ) warning that it won’t be able to pay its debt, sending the company’s shares plummeting by 76%.

According to a Securities and Exchange Commission (SEC) filing, Core Scientific will not be able to make debt payments due in October and November. The company said it is exploring alternatives to its capital structure and is working with financial and legal advisers, but noted that it might have to file for bankruptcy.

The industry was hit with another such news report when Compute North Holdings Inc., one of the largest operators of crypto-mining data centers, announced on Sept. 22 that it had filed for bankruptcy and CEO Dave Perrill had stepped down.

As if that was not enough, Iris Energy Limited (NASDAQ: IREN) – an owner and operator of institutional-grade, proprietary Bitcoin-mining data centers – highlighted some recourse equipment financing issues in its Nov. 2 Financing and Bitmain Prepayment Update.

“The limited recourse equipment financing arrangements have been a recent focus for us. We remain committed to exploring a way in which we may be able to allow the lender to recover its capital investment,” Iris Energy Co-Founder and Co-CEO Daniel Roberts said.

“However, we are also mindful of the current market and that these arrangements were deliberately structured to minimize any potential impact on the broader group during a protracted market downturn.”

Bitcoin mining companies such as Core Scientific, Compute North, Riot Blockchain Inc. (NASDAQ: RIOT) and CleanSpark Inc. (NASDAQ: CLSK) often take on debt to remain competitive in a business with huge capital expenditures in the form of electricity costs, facilities and mining equipment.

Some companies, like Iris Energy, Compute North and Core Scientific, have become cash-strapped because of rising electricity costs and tumbling cryptocurrency prices. These bankruptcy stories seem to highlight that there may be extreme financial and infrastructure undersupply in the cryptocurrency mining sector.

Any Bright Spots in the Cryptomining Industry?

With a growing undersupply of crypto mining infrastructure, Mawson Infrastructure Group Inc.’s (NASDAQ: MIGI) large-scale excess infrastructure capacity could provide some hope for the industry.

Mawson is a digital infrastructure provider with multiple operations throughout the U.S. and Australia. The company’s vertically integrated model is based on a long-term strategy to promote the global transition to the new digital economy.

Mawson says it matches sustainable energy infrastructure with next-generation mobile data center (MDC) solutions, enabling low-cost Bitcoin production and on-demand deployment of infrastructure assets.

With a strong focus on shareholder returns and an aligned board and management, Mawson could emerge as a global leader in environmental, social and governance (ESG) focused on Bitcoin mining and digital infrastructure, given its large-scale excess capacity.


While other companies were struggling to stay afloat, Mawson may have recently grabbed the industry’s attention when it announced its growth and expansion strategies on Oct. 18.

The company revealed that it was relocating its application-specific integrated circuit (ASIC) servers from Georgia to Pennsylvania while continuing the expansion and development of Pennsylvania facilities — Midland, 100 megawatts (MW) and Sharon, 120 MW.

Mawson also said it will secure an additional large-scale site for long-term digital infrastructure capacity, explore opportunities to expand its digital mining business and develop strategic partnerships and relationships with customers and communities.

In June, the company became a 33% shareholder in Tasmania Data Infrastructure Pty Ltd. (TDI). TDI developed a large-scale, 100% renewable energy Bitcoin mining facility at the Que River Mine site in Tasmania, Australia, with up to 35 megawatts of energy infrastructure available for Bitcoin mining.

“The group’s residual infrastructure portfolio of 350 MW is capable of accommodating up to 12 EH.2, which ensures Mawson continues to have substantial expansion capacity for 2023. Our focus on facilities with close geographic proximity allows us to ensure maximum operational efficiencies moving forward,” CEO James Manning said in a press release.

Mawson Infrastructure Group (NASDAQ: MIGI) is a digital infrastructure provider, with multiple operations throughout the USA and Australia. Mawson’s vertically integrated model is based on a long-term strategy to promote the global transition to the new digital economy. Mawson matches sustainable energy infrastructure with next-generation Mobile Data Center (MDC) solutions, enabling low-cost Bitcoin production and on-demand deployment of infrastructure assets. With a strong focus on shareholder returns and an aligned board and management, Mawson Infrastructure Group is emerging as a global leader in ESG focused Bitcoin mining and digital infrastructure.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

Contact Details

TraDigital IR- Colette Eymontt

[email protected]

Company Website


Copyright (c) 2022 TheNewswire - All rights reserved.