Mawson Infrastructure Group Inc. revealed on August 12, 2021, that they had purchased an additional 17,352 of Canaan’s (NASDAQ:CAN) latest generation ASIC Bitcoin miners, adding more than 1.5EH to Mawson’s current operations.
The additional 17,352 Avalon A1166 and A1246 BTC miners will be deployed across Mawson’s USA and Australian operations during this year and in 2022, with miners to be launched at the firm’s first Australian site in Q4 2021, “as well as at its flagship facility in Georgia, USA.”
As mentioned in an update shared with CI, dated August 16, 2021:
“Fully operational, the facility has a capacity of up to 400MW, with the ability to keep production costs down to less than US$4,000 per bitcoin.”
As stated in the announcement, the expansion of the Georgia facility “comes amid a continually evolving Bitcoin mining landscape, which has seen the recent global hash rate falling, resulting in a difficulty level that has adjusted in Mawson’s favor.”
The Georgia facility will “enable Mawson Infrastructure Group Inc. to scale and expand, with the aim of producing 2,000 PH/s by the end of CY21 and 5,000 PH/s by the end of CY22,” the announcement noted.
As Mawson focuses on its business growth, Canaan will continue to be an “important partner,” the update confirmed while adding that Mawson will be provided with next-gen AvalonMiners and will receive customer service as well as onsite and offsite support of these machines.
Nick Hughes-Jones, Chief Commercial Officer of Mawson Infrastructure Group Inc., has shared more information on this announcement with CI.
Can you share more about Mawson’s upcoming mining farm?
Nick Hughes-Jones: Our industry-leading Bitcoin mining facility in Georgia, USA is fully operational. Given the low cost of electricity, we are able to keep the cost of production low — at less than US$4,000 per bitcoin. We are also able to achieve significant scale, with a capacity of up to 400MW.
We are also very proud of our energy mix at the Georgia facility, which is over 80 percent renewable or non-carbon emitting.
Canaan has been a fantastic long-term supplier, with the majority of our current Bitcoin mining fleet comprising the A1166 and A1246 AvalonMiners.
What are the intended synergies that the mining farm will have on the company?
Nick Hughes-Jones: We expect our new facility to enable us to significantly expand our size and scale. We aim to be producing 2,000 PH/s by the end of CY21 and 5,000 PH/s by the end of CY22.
What is the timeline for completion?
Nick Hughes-Jones: Phase I of the facility is already operational and expanding rapidly.
Phase II is currently being built and is due for completion in September.
Phase III is scheduled for Q4 2021.
Do you have plans to build other mining farms?
Nick Hughes-Jones: Yes, we have over 1GW of qualified pipeline and we are looking forward to sharing more developments on this in the coming months.
Where will these be located?
Nick Hughes-Jones: USA and Australia.
How has business been since Mawson’s pivot to a digital infrastructure provider?
Nick Hughes-Jones: We have been established as a digital infrastructure provider since early 2019.
In terms of the regulatory and competitive landscape, how has both worked out for you?
Nick Hughes-Jones: While the regulatory landscape is constantly changing, the trajectory is positive for bitcoin. Recent developments bode well for the industry — Gary Gensler, Chairman of the SEC has made very positive comments around bitcoin and the Coinbase IPO was a huge vote of confidence from the SEC when it comes to digital assets.
The competitive landscape has also changed materially of late, with miners exiting the industry or relocating to other geographic jurisdictions. We have seen the global hash rate falling materially and the difficulty level has adjusted in our favour. This has provided a huge tailwind for existing institutional miners like ourselves to add PH/s with the assistance of our long-term partners at Canaan.
What is your goal in the next 5 years with regards to your mining operations?
Nick Hughes-Jones: Our short to mid-term goal is to have 2,000 PH/s online by the end of CY21 and 5,000 PH/s online by the end of CY22. We will update on further expansion plans in due course.
What are your key business objectives?
Nick Hughes-Jones: We aim to be an institutional-grade and industry-leading Bitcoin miner and digital infrastructure provider, with a strong focus on ESG.
Where do you intend to scale next?
Nick Hughes-Jones: In terms of near-term expansion, we will be focusing efforts on our US and Australian projects. More details will be shared nearer the time.
What are some of your targeted geographical scope of coverage?
Nick Hughes-Jones: We intend to scale our US and Australian sites and will have a healthy pipeline of new sites.
How has Canaan’s Avalon Miners supported your corporate strategy and business needs?
Nick Hughes-Jones: Canaan has been a fantastic supplier and partner since the inception of Mawson Infrastructure Group Inc. They have consistently provided reliable delivery, timely updates of shipments, and more importantly, up-to-date hardware prices. As a result of this, we are better able to forecast our ASIC Bitcoin miner delivery schedule, thereby allowing for a timely operational roll-out of our business in both the US and Australia.
What other factors were instrumental in choosing Canaan as your main partner for mining hardware? E.g. Best-in-class rigs, technology innovation, service and support
Nick Hughes-Jones: We have trialled and tested a wide range of ASIC Bitcoin mining hardware from Canaan, MicroBT, Bitmain, and other suppliers. Ultimately, Canaan’s AvalonMiners are at the cutting edge of technological innovation and we have found the Canaan units to be extremely reliable and robust, exhibiting strong performance across a range of different climates.
The service and support has also been excellent — we are kept up-to-date with shipments and pricing at all times and the senior management has been great to deal with. We look forward to continuing our strong partnership for the long-term.
As you continue your ambitions to bridge the gap between the rapidly emerging digital asset industry and traditional capital markets, do you foresee strengthening your cooperation with Canaan to support this aspiration?
Nick Hughes-Jones: Yes, Canaan has been an integral part of our growth — both historically and in the years to come — and will be a very important partner as we continue to scale and move forwards in the industry. We look forward to strengthening the cooperation and partnership between Canaan and Mawson Infrastructure Group Inc.