Mawson Infrastructure Group Inc. Announces Monthly Operational Update for July 2024

Rhea-AI Summary

Mawson Infrastructure Group Inc. (NASDAQ: MIGI) reported significant progress in July 2024, with 54% year-over-year growth in digital assets colocation revenue. The company expanded its Midland Facility to 120MW, increasing overall operating capacity to 129MW. Mawson entered the AI and HPC colocation markets, signing a 20MW agreement to host NVIDIA GPUs, potentially generating $285 million over a 6-year term. A non-binding LOI could increase this capacity to 144MW. July's overall revenue was $3.94 million, with digital asset colocation revenue at $2.75 million. The company is expanding its digital infrastructure platform across AI, HPC, and digital assets markets, aiming for sustainable growth and increased shareholder value.

Positive

• 54% year-over-year growth in digital assets colocation revenue
• Expansion of Midland Facility to 120MW, increasing overall operating capacity to 129MW
• Entry into AI and HPC colocation markets with a 20MW agreement, potentially generating $285 million over 6 years
• Non-binding LOI to potentially increase AI/HPC colocation capacity to 144MW
• Overall monthly revenue of $3.94 million in July 2024

Negative

• None.

Insights

Financial Analyst

Mawson's July 2024 update reveals promising growth and strategic expansion. The 54% Y/Y increase in digital assets colocation revenue to $2.75 million is impressive, indicating strong demand. The company's entry into AI and HPC markets is a game-changer, potentially diversifying revenue streams and reducing reliance on volatile crypto markets.

The new 20 MW AI/HPC colocation agreement could generate $285 million over 6 years, providing stable, long-term revenue. The LOI to expand to 144 MW shows significant growth potential. However, investors should note that full realization depends on successful execution and market conditions.

With $3.94 million in overall monthly revenue, Mawson demonstrates a balanced revenue mix. The expansion to 129 MW capacity positions the company well for future growth. Investors should monitor the AI/HPC segment's development and its impact on profitability.

Tech Expert

Mawson's strategic pivot into AI and HPC infrastructure is timely and potentially lucrative. The decision to host NVIDIA GPUs for AI applications aligns with the surging demand for AI computing power. This move could position Mawson as a key player in the AI infrastructure space, which is experiencing explosive growth.

The company's existing expertise in managing high-power digital infrastructure for crypto mining should translate well to AI and HPC needs. However, the technical requirements and cooling solutions for AI workloads may differ, requiring additional investments and expertise.

The planned expansion to 144 MW for AI/HPC services is ambitious and reflects confidence in market demand. Investors should watch for updates on the technical specifications of these deployments and any partnerships with AI software providers, which could further enhance Mawson's value proposition in this competitive market.

Market Research Analyst

Mawson's expansion into AI and HPC markets is a strategic move that capitalizes on the booming AI sector. This diversification reduces the company's exposure to crypto market volatility while tapping into a high-growth area. The potential $285 million revenue from the initial AI/HPC agreement demonstrates the lucrative nature of this market.

The company's attendance at various tech and AI conferences indicates a strong commitment to establishing itself in these new sectors. This networking could lead to additional partnerships and customers. However, competition in the AI infrastructure space is intense, with major players like AWS and Google Cloud also vying for market share.

Investors should monitor Mawson's ability to execute on its AI/HPC commitments and secure additional contracts. The company's success in transitioning from primarily crypto-focused to a broader digital infrastructure provider will be important for long-term growth and stability.

Digital Assets Colocation Monthly Revenue up 54% Y/Y from July last year
Recently Expanded into AI (Artificial Intelligence) and HPC (High-Performance Computing) Markets
AI/HPC Colocation Agreement Recently Signed Expected to Generate Cumulative Revenue Potential of $285 Million¹ through 6-Year Term

MIDLAND, Pa., Aug. 22, 2024 (GLOBE NEWSWIRE) -- Mawson Infrastructure Group Inc. (NASDAQ: MIGI) (“Mawson” or “the Company”), a publicly-traded digital infrastructure provider serving the AI, HPC and Digital Assets markets and headquartered in the United States, today announced its unaudited business and operational update for July 2024.

Rahul Mewawalla, CEO and President, stated, “We are pleased to deliver another month of significant progress across several key areas that are expected to contribute to future growth opportunities for our digital infrastructure platforms, including delivering 54% year-over-year growth in our digital assets colocation revenue. We also have been ramping up our recent digital assets enterprise colocation customer deployment post the 20 MW expansion, which has grown our current operational capacities at our Midland Facility to 120MW, and increased our overall current operating capacity to 129MW. In addition, we have expanded our digital colocation business into new digital assets with this ramp up of our latest customer deployment. Moreover, the recent expansion of our business into AI (artificial intelligence) and HPC (high-performance computing) colocation services marks a significant step forward in our long-term growth strategy. This expansion not only broadens our revenue streams but also positions Mawson as a rising player in the AI and HPC infrastructure space, while expanding our growth and innovation initiatives, as we continue to position ourselves strategically in the overall digital infrastructure space.”

Unaudited financial and operational highlights for July 2024:

• Company executed on key long-term growth strategy and entered the AI (artificial intelligence) and HPC (high-performance computing) colocation markets, recently signing an AI/HPC colocation agreement for 20 MW to host NVIDIA GPUs.
• New 20 MW AI/HPC colocation business agreement has Mawson providing AI/HPC colocation services for the customer’s AI deployment. The initial 20 MW of capacity is expected to be deployed in the first quarter of 2025 and could generate approximately $92 million² of potential revenue to Mawson during the first 2-years of the Agreement and approximately $285 million³ of total cumulative revenue over the 6-year initial contract term of the Agreement.
• In addition, Mawson and the customer have also signed a non-binding letter of intent (LOI) to increase the initial 20 MW for AI/HPC colocation services to a total of 144 MW over time, which has the long-term potential to increase the total AI and HPC colocation capacity and services by 6x.
• Ramping up colocation services at recently completed 20 MW expansion of the Midland facility that increased the Company’s total capacity to about 129 MW and about 41,530 miners.
• Overall monthly revenue of about $3.94 million, monthly digital asset colocation business revenue up 54% Y/Y to $2.75 million, monthly energy management business revenue of $0.75 million, monthly Bitcoin self mining business revenue of $0.44 million, and recently expanded into AI and HPC Markets.
• Expanding into AI and HPC colocation services business, coupled with Mawson’s established digital assets operations, creates a powerful digital infrastructure platform enabling sustainable growth while increasing shareholder value in the rapidly evolving digital infrastructure landscape across AI, HPC, and digital assets. 

Conferences and Events Update

Mawson has planned for its CEO and President, Rahul Mewawalla to join the following upcoming conferences and events. Please contact IR@Mawsoninc.com for further information.

• Gateway Conference in September 2024 in San Francisco, California. Mawson’s CEO and President, Rahul Mewawalla, will be presenting and speaking on September 5^th 2024 during the Artificial Intelligence, Blockchain and Digital Infrastructure Track.
• H.C. Wainwright 26th Annual Global Investment Conference in September 2024 in New York City, New York
• Token 2049 in September 2024 in Singapore
• World Summit Artificial Intelligence (AI) in October 2024 in Amsterdam, Netherlands
• Bitcoin Europe in October 2024 in Amsterdam, Netherlands
• Money 20/20 in October 2024 in Las Vegas, Nevada
• Pacific Bitcoin in October 2024 in Los Angeles, California
• Money 20/20 in October 2024 in Las Vegas, Nevada
• Tech & AI (Artificial Intelligence) Live in November 2024 in New York, NY
  

About Mawson Infrastructure

Mawson Infrastructure Group (NASDAQ: MIGI) is building Next-Generation Infrastructure Platforms for AI, HPC, and Digital Assets. Our innovation, technology, and operational expertise enables us to operate and optimize digital infrastructure to accelerate the digital economy including artificial intelligence, high-performance computing solutions, and digital assets using a Carbon-Free energy approach.

For more information, visit: https://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 of 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 digital assets and cryptocurrencies, further or new regulation of digital assets, the evolution of AI and HPC market and changing technologies, the slower than expected growth in demand for AI, HPC and other accelerated computing technologies than expected, the ability to timely implement and execute on AI and HPC digital infrastructure, and the ability to timely complete the digital infrastructure build-out in order to achieve its revenue expectations for the periods mentioned. 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 April 1, 2024, and Mawson’s Quarterly Report on Form 10-Q filed with the SEC on August 21, 2023, November 13, 2023, May 15, 2024, August 19,2024, 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.

For more information, visit us at https://www.mawsoninc.com

Twitter: Mawson (@Mawsoninc) / X (twitter.com)

LinkedIn: https://www.linkedin.com/company/mawsoninc/

Facebook: Mawson Inc | Pittsburgh PA | Facebook

YouTube: https://www.youtube.com/c/MawsonInc 

Investor Contact:
Investor Relations Team
IR@mawsoninc.com

Partnerships Contact:
Partnerships Team
Partnerships@mawsoninc.com

Media Contact:
Media Relations Team
mediarelations@mawsoninc.com

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¹ Revenue subject to change depending on AI/HPC operating capacity ramp up timeframes as well as AI/HPC potential colocation rate updates every two years as per the AI/HPC Agreement
^2,3 Revenue subject to change depending on AI/HPC operating capacity ramp up timeframes as well as potential AI/HPC colocation rate updates every two years as per the Agreement

FAQ

What was Mawson Infrastructure Group's (MIGI) digital assets colocation revenue growth in July 2024?

Mawson Infrastructure Group (MIGI) reported a 54% year-over-year growth in digital assets colocation revenue for July 2024.

How much total revenue did Mawson Infrastructure Group (MIGI) generate in July 2024?

Mawson Infrastructure Group (MIGI) generated approximately $3.94 million in total revenue for July 2024.

What new market did Mawson Infrastructure Group (MIGI) enter in 2024?

In 2024, Mawson Infrastructure Group (MIGI) entered the AI (Artificial Intelligence) and HPC (High-Performance Computing) colocation markets.

What is the potential revenue from Mawson's (MIGI) new AI/HPC colocation agreement?

Mawson's (MIGI) new 20MW AI/HPC colocation agreement has the potential to generate approximately $285 million in cumulative revenue over the 6-year initial contract term.