Mawson reports significant revenue growth in digital and energy sectors By Investing.com

MIDLAND, Pa. – Mawson Infrastructure Group Inc. (NASDAQ: MIGI), a digital infrastructure provider, has announced substantial year-over-year revenue growth in its digital colocation and energy management businesses for June 2024. The company reported a 56% increase in digital colocation business revenue, reaching $2.48 million, and a notable 262% surge in energy management revenue, achieving $0.74 million.

The company has also completed a 20 MW facility expansion in Midland, Pennsylvania, which is strategically positioned near Pittsburgh. This expansion increases Mawson’s total capacity to 129 MW and allows for the operation of approximately 41,530 miners across all facilities.

In line with this growth, Mawson has entered into a new colocation services agreement to deploy about 5,880 IceRiver KAS KS3M miners dedicated to mining Kaspa (KAS), a proof-of-work (PoW) digital asset. Kaspa, currently the fifth-largest PoW digital asset by market capitalization, utilizes a BlockDAG (Directed Acyclic Graph) structure, which allows for faster transaction processing compared to traditional blockchain networks.

The overall monthly revenue for the company in June was about $3.81 million, equivalent to approximately 58 BTC, based on the average price for the month. The introduction of Kaspa mining is expected to bolster Mawson’s digital assets and computation expertise, contributing to its strategic growth in high-performance computing solutions.

Mawson’s CEO and President, Rahul Mewawalla, expressed enthusiasm for the company’s progress and its role in fostering innovation within the broader digital ecosystem, particularly in proof-of-work networks. He highlighted the company’s commitment to advancing next-generation compute resources.

The company has planned for Mewawalla to participate in several upcoming industry conferences and events, signaling Mawson’s active engagement with the broader digital infrastructure community.

Investors are advised to consider all risk factors related to uptime and other uncertainties detailed in Mawson’s regulatory filings when evaluating the company’s performance. This business and operational update is based on unaudited figures and forward-looking statements provided by Mawson Infrastructure Group Inc. in a press release statement.

In other recent news, Mawson Infrastructure Group has been making substantial strides in its corporate development and expansion plans.

The company has announced the appointment of Kaliste Saloom as its General Counsel and Corporate Secretary, along with the introduction of Anurag Gandhi as Head of Corporate Strategy and Vikram Murali as Head of Corporate Development. These appointments are part of the company’s strategic growth and exploration of merger and acquisition opportunities.

Mawson Infrastructure Group has also revealed a 20 MW expansion of its Midland, Pennsylvania facilities, expected to support approximately 38,810 miners. This expansion is a response to the increasing demand for the company’s digital infrastructure services.

On the executive front, the company has appointed former U.S. Congressman Ryan Costello as the new Chair of its Board of Directors. Several executive officers, including Saloom, received equity compensation awards under the company’s 2024 Omnibus Equity Incentive Plan.

These are just some of the recent developments within Mawson Infrastructure Group as it continues to grow in the digital infrastructure market.

InvestingPro Insights

Mawson Infrastructure Group Inc. (NASDAQ: MIGI) has shown a dynamic presence in the digital infrastructure sector, especially with the substantial growth in its digital colocation and energy management businesses as reported for June 2024. To further understand the financial health and market performance of MIGI, key metrics and InvestingPro Tips can provide investors with a deeper insight.

InvestingPro Data indicates a market capitalization of $28.73 million USD, which reflects the company’s current valuation in the market. Despite the reported revenue growth, the company’s P/E ratio stands at -0.38, suggesting that MIGI is not currently profitable. The revenue growth for the last twelve months as of Q1 2024 was reported at -24.73%, indicating some challenges in maintaining consistent revenue growth over the year.

From the InvestingPro Tips, it’s notable that analysts anticipate sales growth in the current year, which may align with the recent revenue uptick reported by MIGI. However, the company is also flagged for high price volatility, which is evident from the significant return over the last week and the strong return over the last three months, at 30.77% and 53.15% respectively. This volatility could be of interest to traders looking for short-term opportunities, but it also signals a degree of risk for investors seeking stability.

It is also worth noting that MIGI does not pay a dividend to shareholders, which could be a consideration for income-focused investors. The company’s short-term obligations exceeding its liquid assets may raise concerns about its ability to meet immediate financial liabilities.

For those interested in a comprehensive analysis, there are 13 additional InvestingPro Tips available at https://www.investing.com/pro/MIGI. These tips can provide valuable guidance on MIGI’s financial standing and market performance. To gain access to these insights, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, which includes additional tips and real-time metrics.

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