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, announced significant year-over-year revenue growth in its digital colocation and energy management services for June 2024. The company reported a 56 percent increase in revenue from its digital colocation business, reaching $2.48 million, as well as a significant 262 percent increase in energy management revenue, reaching $0.74 million.

The company also completed a 20 MW expansion of its Midland, Pennsylvania facility, which is strategically located near Pittsburgh. This expansion increases Mawson’s total capacity to 129 MW and enables 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 approximately 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, uses a BlockDAG (Directed Acyclic Graph) structure that enables faster transaction processing compared to traditional blockchain networks.

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

Mawson CEO and President Rahul Mewawalla expressed enthusiasm for the company’s progress and its role in driving innovation in the broader digital ecosystem, particularly in proof-of-work networks, and emphasized the company’s commitment to developing next-generation computing resources.

The company has scheduled Mewawalla to participate in several upcoming industry conferences and events, a sign of Mawson’s active involvement in the broader digital infrastructure community.

Investors should consider all uptime risks and other uncertainties detailed in Mawson’s regulatory filings when evaluating the company’s performance. This business and operational update is based on unaudited data and forecasts provided by Mawson Infrastructure Group Inc. in a press release.

In other recent news, Mawson Infrastructure Group has made significant progress in executing its corporate growth and expansion plans.

The company announced the appointment of Kaliste Saloom as General Counsel and Corporate Secretary, along with the appointment 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 expansion and exploration of M&A opportunities.

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

On the executive front, the company named former U.S. congressman Ryan Costello as the new chairman of its board of directors. Several executive directors, including Saloom, received equity compensation awards under the company’s 2024 Omnibus Equity Incentive Plan.

These are just some of the recent changes at Mawson Infrastructure Group as it continues to expand in the digital infrastructure market.

InvestingPro Insights

Mawson Infrastructure Group Inc. (NASDAQ: MIGI) has demonstrated a dynamic presence in the digital infrastructure sector, particularly with significant growth in its digital colocation and energy management businesses, as reported in June 2024. To better understand the financial health and market performance of MIGI, InvestingPro’s key metrics and advice can provide investors with deeper insights.

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

InvestingPro’s advisory shows that analysts are predicting sales growth for the current year, which could be in line with the recent revenue growth reported by MIGI. However, the company is also flagged for its high price volatility, which is evident from its significant return over the past week and strong return over the past three months, 30.77% and 53.15%, respectively. This volatility could be interesting for traders looking for short-term opportunities, but it also signals a degree of risk for investors looking for stability.

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

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

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