Alliance Resource Partners (ARLP), a leading coal mining company listed on NASDAQ, announced during an earnings call that it has entered crypto mining by successfully amassing 425 Bitcoin (BTC) through the use of excess power generated at its facilities.
Coal Miner Alliance Resource Opens Up to Crypto Mining, Accumulates 425 BTC
ARLP's Chief Financial Officer Cary Marshall announced the company's entry into crypto mining, stating that they started Bitcoin mining as a pilot project in the second half of 2020.
The primary purpose was to monetize excess electrical capacity at the River View mine. Marshall also noted that the company valued its 425 BTC holdings at $30 million, contributing to net earnings of $7.3 million after accounting for property, facility and equipment costs.
Following the earnings announcement, shares of ARLP rose 5%, beating revenue estimates for the period.
Marshall clarified that ARLP does not engage in purchasing Bitcoin, but only focuses on mining operations using existing equipment.
Additionally, the company rents excess capacity in its data center to other Bitcoin miners, taking advantage of low energy costs.
Compared to other institutional entities that hold Bitcoin on their balance sheets, ARLP's holdings are relatively modest.
According to data from BitcoinTreasuries.net, MicroStrategy leads the way with assets worth $13.5 billion, while Tesla has $615 million worth of cryptocurrency.
ARLP's strategic move into crypto mining signifies the company's proactive approach to leveraging its resources and exploring new revenue streams amid evolving market dynamics.
*This is not investment advice.