Popular coal miner Alliance Resource minted 425 Bitcoins by the end of Q1 by using the excess power generated at its facilities. The company has only those Bitcoins on its balance sheet that it minted and has not been actively involved in BTC buying.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
2 mins read
The Bitcoin mining industry continues to attract traditional market players despite the reduction in block rewards after the recent Bitcoin halving event. As per the latest reports, Alliance Resource, the NASDAQ-listed coal miner said that they have mined around 425 Bitcoins worth $30 million using the excess power generated at its facilities.
During the earnings call, Cary Marshall, the firm’s chief financial officer, said:
“In the second half of 2020, we started mining bitcoin as a pilot project to monetize the already paid-for yet underutilized electricity load at our River View mine.”
As per Marshall, Alliance Resource Partners (NASDAQ: ARLP) holds over 425 Bitcoins on its balance sheet by the end of Q1 2024. As of the current Bitcoin price, its value stands at $30 million. However, if the company factors in net costs such as plant, property, and equipment, its value shall come to $7.3 million.
Following the earnings report, ARLP surged by 5%, surpassing revenue estimates set for the company. Marshall clarified that ARLP is not engaging in the purchase of Bitcoin or similar assets; rather, it is solely focused on mining Bitcoin using its existing equipment.
“We do have some extra capacity that we’re renting out to other bitcoin miners within the data center that we’ve effectively built for this bitcoin mining to take advantage of the low energy costs we have,” he continued.
Cryptoquant, an on-chain analytics platform, has detected a notable transfer of BTC from miners to spot exchanges. This movement suggests a surge in Bitcoin being sold by miners, potentially indicating a market imbalance.
It was widely anticipated that Bitcoin miners would sell their BTC to cover operational costs following the Bitcoin halving event. This move appears logical from a fundamental perspective, as miners are currently earning about half the BTC revenue compared to previous weeks, despite similar price levels.
The miners sent a large amount of #Bitcoin to spot exchanges
“Observing high volumes of $BTC coming from miners to spot exchanges often creates a sense of imbalance in the market.” – By @theKriptolik
Read the full post 👇https://t.co/ixBJlu7Dxm
— CryptoQuant.com (@cryptoquant_com) April 29, 2024
Miners play a vital role in validating and securing the network, bearing expenses such as electricity, hardware, rent, and payroll. In exchange for their efforts, they receive rewards in the form of Bitcoin. However, if negative profitability persists among miners for an extended period, it could potentially impact Bitcoin’s price.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
