Mawson Infrastructure Group’s Texas Departure
Mawson Infrastructure Group is packing its bags and heading out of Texas! The company recently finalized an $8.5 million sale of its local subsidiary, Luna Squares Texas, to a Singaporean fund manager. What was once a bustling hub for crypto mining has turned into a ghost town for this particular outfit as it focuses efforts elsewhere.
The Sale Details
In an announcement made on April 19, CEO James Manning noted that the sale to M Turing VCC Oracle Phase 1 Fund was part of a larger strategy to streamline operations and tackle the company’s debt situation. After all, when the crypto market goes bust, it’s time to adjust your sails — or at least tuck in your wallet!
The Shift in Operations
Since the crypto crash in June 2022, Mawson has been in a pullback mode, initiating plans to halt significant capital spending. This strategy also led to the sale of their Georgia Bitcoin mining facility for an impressive $33 million. With Texas going the way of the dodo, their operations have been concentrated around Pennsylvania, leaving that state as one of the last bastions in the U.S.
Government Action in Texas
But what’s pushing these miners away? It seems the local government has its sights set on crypto mining firms, pushing through Senate Bill 1751, which aims to trim down incentives for companies enjoying sweet deals on energy compensation. With looming changes set to finalize by September, Mawson’s decision to exit Texas seems well-timed. Talk about reading the room!
Voices from the Ground
While the company was adamant that their sale was made without regard to the bill’s movements, it seems to be the straw that broke the camel’s back. Mawson’s COO Liam Wilson declared, “The site was undeveloped, a true greenfield site, and didn’t fit into our future plans anymore.” Ouch! That sort of honesty stings. Yet, at least it’s good to see companies are savvy enough to adapt.
What Lies Ahead
On the other side of the transaction, Ray Li, CEO of Mainnet Capital, expressed optimism. The new owners see potential in participating in Texas’ energy grid load response program. After all, as Jawas would say, “There’s always money in the energy program” — uh, quote me on that!
Implications for the Future
As crypto advocacy groups and concerned citizens prepare to gather in Austin on April 25, voicing their opposition to such legislation, the future of crypto mining in Texas hangs in the balance. With all these movements, it feels like we’re playing a giant game of chess. And right now, Texas miners are looking to check their way out!
