Coinspeaker
Public-Listed Coal Miner Alliance Resource Partners Dabbles into Bitcoin Mining
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.
Bitcoin Miners Exert BTC Sell Pressure
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.
Public-Listed Coal Miner Alliance Resource Partners Dabbles into Bitcoin Mining
