The Sale Strengthens Mawson’s Financial
Position, Enabling Expansion and Provides Operational
Efficiencies
Total sale consideration of $8.5m cash and
stablecoins
Mawson Infrastructure Group Inc. (NASDAQ: MIGI) (“Mawson'' or
the “Company”), a digital infrastructure provider, announces today
that it has signed and closed a binding sale agreement for Mawson’s
greenfield sites in Midland, TX, effective April 18, 2023. The sale
price was $8.5m in cash and stablecoins. The transaction involved
the sale of 100% of Mawson’s subsidiary Luna Squares Texas LLC,
which held the relevant lease agreements and related contracts. In
addition, Mawson sold 59 transformers which were earmarked for
these Texas sites. The buyer is a fund managed by Mainnet Capital,
a Singapore-based fund manager, called M Turing VCC Oracle Phase 1
Fund.
The sale of the Texas sites allows Mawson to focus all attention
on its current 240 MW of facilities in Pennsylvania. The proceeds
of the sale will be used for further debt reduction, as well as
funding future expansions across Mawson’s other sites, including
the acquisition of additional ASIC miners.
Mawson is scheduled to turn on an added 70 MW at its Midland, PA
site, and an initial 12 MW at its Sharon, PA site in Q2, 2023.
Mawson expects to have 132 MW online during Q2, 2023,
representing enough power for up to 38,808 ASIC miners, operating
at approximately 4.2 EH/second.1 This capacity expansion could
potentially generate up to approximately 11.025 BTC per day, or
approximately $120 million in revenue per year, which would be
split between Mawson and its hosting customers.2
James Manning, CEO, commented, “We are incredibly pleased
to have closed the sale of our Texas sites. The proceeds of the
sale will be used to ensure Mawson continues to reduce debt and
start to expand our operations in 2023. We look forward to seeing
our increased mining and power capacity online in Q2, 2023.”
Ray Li, CEO of Mainnet Capital, the investment manager of
M Turing VCC Oracle Phase 1 Fund, said, "We are eager to break
ground immediately and look forward to growing alongside the great
state of Texas. This acquisition highlights our dedication to the
rapidly expanding Bitcoin mining industry in the United States and
reinforces our commitment to drive value for our investors and
stakeholders, as well as contribute to the growth and success of
the Midland, Texas community. With abundant energy resources and a
supportive regulatory environment, Texas is poised to continue
leading the country in this emerging space. We recognize the
importance of grid resiliency in Texas and plan to contribute to
its stabilization by participating in ERCOT demand response and
load resource programs. By integrating into the West Texas culture,
we aim to bring additional economic growth, jobs, and opportunities
to the Midland community through our newly acquired subsidiary,
Luna Square Texas, LLC.”
Justin Ballard, Co-Founder and Partner of Quarry Advisors
(www.thequarry.io), provided advisory services for the sale
transaction. Quarry Advisors is a leading transactional advisory
firm in the energy and digital mining industries, providing a wide
range of services to clients in these rapidly evolving
businesses.
Commenting on the sale, Ballard said, "We are thrilled to have
been given the opportunity to work with Mawson to complete this
transaction. As the mining industry continues to grow and evolve,
we believe that there is tremendous potential for companies to
enter the mining space and generate significant returns. The
Quarry’s team of experienced advisors is built and dedicated to
supporting our clients as they navigate this space and partnering
with them to achieve successful transactions.”
James Manning, CEO, further commented, “We thank Justin
and his team for working on a process to achieve the best sale
outcome for the site and bringing the transaction to a close. The
sale further demonstrates our operational consolidation and
concentration on our Pennsylvanian facilities, and the ability of
our deal-making team to source, negotiate and close value-adding
transactions. We will look forward to making future announcements
on site and site expansion in and around our existing
facilities.”
About Mawson Infrastructure
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.
For more information, visit: www.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 August 22, 2022, November 14, 2022 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.
1 Statements about ASIC miner capacity and Exahash forecasts in
this document are not an assurance that Mawson will have that many
ASIC miners available to deploy (whether self-mining or hosted
units). Mawson’s ability to deploy units will depend on many
factors such as Mawson’s future ASIC miner purchases and sales, our
ability to attract future hosting customers, and the number of ASIC
miners’ customers have to deploy.
2 At the current Bitcoin price, block reward rate and network
difficulty, assuming those miners are online with 100% uptime.
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version on businesswire.com: https://www.businesswire.com/news/home/20230419005625/en/
Investor Contact: Brett Maas 646-536-7331
brett@haydenir.com www.haydenir.com
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