Mawson Infrastructure Group Inc. Reports Q2 2024 Financial Results

Rhea-AI Summary

Mawson Infrastructure Group Inc. (NASDAQ: MIGI) reported strong Q2 2024 financial results, with total revenue increasing 24% Y/Y to $13.11 million. The company's digital colocation business saw a 77% Y/Y revenue increase to $8.13 million, while its energy management business grew 70% Y/Y to $1.73 million. Mawson completed a 20 MW expansion of its Midland facilities, increasing capacity to 120 MW. The company also expanded into AI and HPC colocation markets, executing a 20 MW agreement to host NVIDIA GPUs. Mawson's Bitcoin production for Q2 was 49 BTC, generating $3.25 million in self-mining revenue. The company has successfully diversified its operations, signed new colocation agreements, and positioned itself for growth in digital assets, AI, and HPC markets.

Positive

• Q2 2024 digital colocation business revenue increased 77% Y/Y to $8.13 million
• Q2 2024 energy management business revenue increased 70% Y/Y to $1.73 million
• Q2 2024 total revenue increased 24% Y/Y to $13.11 million, and 75% YTD in 2024
• Completed 20 MW expansion of Midland facilities, increasing capacity to 120 MW
• Expanded into AI and HPC colocation markets, executing a 20 MW agreement for NVIDIA GPUs
• Increased total combined capacity to about 129 MW across all facilities
• Executed new additional colocation agreement with an enterprise digital asset customer
• Expanded colocation business into new digital assets, such as KAS mining

Negative

• Q2 2024 Bitcoin production of only 49 BTC, potentially indicating lower mining efficiency or profitability

Insights

Financial Analyst

Mawson Infrastructure Group's Q2 2024 results show promising growth trends. Total revenue increased by 24% Y/Y to $13.11 million, with significant contributions from both digital colocation and energy management segments. The digital colocation business saw a robust 77% Y/Y increase, while the energy management business grew by 70% Y/Y. These figures indicate strong market demand for Mawson's services.

Notably, the company has optimized and reduced SG&A expenses by 42% Y/Y, demonstrating improved operational efficiency. The expansion of the Midland facilities to 120 MW positions Mawson as a major player in the PJM market. The diversification into AI and HPC colocation markets, along with the new 20 MW AI/HPC agreement, opens up additional revenue streams and mitigates risks associated with Bitcoin mining volatility.

While the growth is impressive, investors should monitor the company's ability to maintain this momentum and successfully execute its expansion plans in the rapidly evolving digital infrastructure landscape.

Tech Expert

Mawson's strategic pivot towards diversification is noteworthy. By expanding into AI and HPC colocation markets, the company is positioning itself at the forefront of emerging technologies. The execution of a 20 MW AI/HPC colocation agreement for NVIDIA GPUs is particularly significant, given the current AI boom and high demand for GPU computing power.

The expansion of digital colocation services to include new digital assets like KAS mining shows adaptability to market trends. This move, combined with the AI and HPC focus, creates a more robust and future-proof business model. The 120 MW Midland facility near Pittsburgh is strategically located in a growing innovation hub, which could lead to valuable partnerships and opportunities.

However, the relatively low Bitcoin production (49 BTC) suggests that Mawson is prioritizing its colocation and energy management services over self-mining. This shift may prove beneficial in the long run, especially if it leads to more stable revenue streams and reduced exposure to cryptocurrency price volatility.

Q2 Digital Colocation Business Revenue increased 77% Y/Y
Q2 Energy Management Business Revenue increased 70% Y/Y
Company Optimized and Reduced Q2 SG&A Expenses by 42% Y/Y
Q2 2024 Total Revenue Increased 24% Y/Y and Increased 75% YTD (6 months) of 2024

MIDLAND, Pa., Aug. 19, 2024 (GLOBE NEWSWIRE) -- Mawson Infrastructure Group Inc. (NASDAQ: MIGI) (“Mawson”, “the Company”), a publicly traded digital infrastructure provider headquartered in the United States, today announced its unaudited financial and operational results for the second quarter of fiscal year 2024 ended June 30, 2024.

Rahul Mewawalla, CEO and President of Mawson, said, "We are pleased to deliver another solid quarter, including growth of our digital colocation business with revenue increasing by 77% this quarter, and growth of our energy management business with revenue increasing by 70% this quarter, compared to the same quarter last year. In line with our long-term growth strategy, we are also delighted to continue to make significant strategic strides and have achieved several major milestones. We have successfully completed the operational expansion of our Midland facilities by 20% to 120 MW, which is expected to be amongst the largest operating sites in the PJM market amongst all the North American Public Bitcoin mining companies. We also further strengthened our market presence by signing and executing an additional colocation agreement with an enterprise customer. In addition, we expanded our digital colocation business into new digital assets. Moreover, we recently broadened our business to include AI (artificial intelligence) and HPC (high-performance computing) colocation markets, reflecting our continued focus on innovation and evolving market and customer needs. We are excited about the future of our digital infrastructure platforms and our computing infrastructure to provide solutions across digital assets, AI, and HPC markets.”

Financial and operational highlights for the quarter ended June 30, 2024 and to-date, includes:

• Q2 2024 Digital colocation business revenue increased 77% Y/Y to $8.13 million.
• Q2 2024 Energy management business increased 70% Y/Y to $1.73 million.
• Q2 2024 Bitcoin production of 49 BTC¹ and Bitcoin self-mining revenue of $3.25 million.
• Q2 2024 Total Revenue increased 24% Y/Y to $13.11 million, and increased 75% YTD (6 months) in 2024.
• Completed 20 MW expansion of its Midland facilities, increasing Midland’s operating capacity by 20% to 120 MW, growing to be amongst the largest operating sites in the PJM market amongst all the North American Public Bitcoin mining companies. The Midland site is located near Pittsburgh, a growing hub of innovation around digital infrastructure, digital assets, artificial intelligence and high-performance computing.
• Increased Mawson’s total combined capacity to about 129 MW across all its facilities.
• Executed new additional colocation agreement with an enterprise digital asset customer.
• Expanded colocation business into new digital assets, such as KAS mining colocation services.
• Strengthened management and operational teams with hires across sales, operations, finance and corporate functions.
• Expanded into AI (artificial intelligence) and HPC (high-performance computing) colocation markets.
• Executed an AI/HPC colocation agreement for 20 MW to host NVIDIA GPUs.
  

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
• 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 Live in November 2024 in New York, New York
  

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, 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

__________________

¹ Average BTC sales price for Q2 was $65,657

FAQ

What was Mawson Infrastructure Group's (MIGI) Q2 2024 total revenue?

Mawson Infrastructure Group's (MIGI) Q2 2024 total revenue increased 24% year-over-year to $13.11 million.

How much did MIGI's digital colocation business revenue grow in Q2 2024?

MIGI's digital colocation business revenue increased 77% year-over-year to $8.13 million in Q2 2024.

What was the capacity expansion of MIGI's Midland facilities in Q2 2024?

MIGI completed a 20 MW expansion of its Midland facilities, increasing the operating capacity by 20% to 120 MW.

How many Bitcoins did MIGI produce in Q2 2024?

MIGI produced 49 Bitcoins in Q2 2024, generating $3.25 million in Bitcoin self-mining revenue.

What new markets did MIGI expand into according to the Q2 2024 report?

MIGI expanded into AI (artificial intelligence) and HPC (high-performance computing) colocation markets, executing a 20 MW agreement to host NVIDIA GPUs.