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Mawson reports significant revenue growth in digital and energy sectors

Published 17/10/2024, 13:54
MIGI
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MIDLAND, Pa. - Mawson Infrastructure Group Inc. (NASDAQ:MIGI), a technology firm specializing in digital infrastructure for AI and high-performance computing, has announced substantial year-over-year revenue growth for September 2024. According to the company's unaudited business update, total monthly revenue surged by 65% from the previous year, amounting to approximately $4.15 million.

A notable increase was observed in the digital colocation business, which skyrocketed from zero revenue in September 2023 to multi-million dollar monthly earnings, serving a diverse range of enterprise-grade customers. The energy management segment also experienced a significant uptick, with revenues climbing 271% year-over-year to $0.62 million.

Mawson's self-mining Bitcoin operations contributed $0.18 million to the monthly business revenue. Additionally, the company has successfully completed the first phase of construction at its Perry County, Ohio facility. This development is anticipated to boost Mawson's total capacity to 153 megawatts once fully completed.

The CEO and President of Mawson, Rahul Mewawalla, expressed enthusiasm over the company's progress and its expansion into AI and high-performance computing markets. He highlighted the importance of a carbon-free and sustainable energy approach, particularly in the context of global compute capacity growth.

Mawson has also secured a lease extension at its Midland, Pennsylvania facility until September 2027, with the overall lease tenure extending through September 2036. The company's strategic approach and business details are available in a presentation on its corporate website.

The press release statement from Mawson Infrastructure Group Inc. serves as the basis for this report. It should be noted that the forward-looking statements in the release involve risks and uncertainties, and actual results may differ materially from those projected.

In other recent news, Mawson Infrastructure Group Inc. reported significant growth in its digital colocation business, with revenue increasing by 166% year-over-year and 25% month-over-month, reaching $3.43 million. This comes alongside an overall monthly revenue increase of 27%, totaling approximately $4.44 million. A key factor in this growth is a 6-year AI customer colocation agreement with NVIDIA (NASDAQ:NVDA), expected to generate a cumulative revenue potential of $285 million.

The company also announced a lease amendment for a 24 MW facility in Ohio, increasing its total capacity to 153 MW. This, along with an extended lease on a 120 MW facility in Midland, Pennsylvania, solidifies Mawson's presence in the PJM market, the largest competitive wholesale power market in North America.

In executive changes, CEO Rahul Mewawalla was granted 2,500,000 restricted stock units as part of the company's 2024 Omnibus Equity Incentive Plan. The company also announced the departure of Chief Development Officer Craig Hibbard and the appointments of Kaliste Saloom as General Counsel and Corporate Secretary, and former U.S. Congressman Ryan Costello as the new Chair of the Board of Directors.

Mawson Infrastructure Group has also extended its lease agreement with Jewel Acquisition, LLC for an 8-acre land in Midland, Pennsylvania, until 2027 and signed a marketing deal with Outside The Box Capital Inc. These are the recent developments within Mawson Infrastructure Group.

InvestingPro Insights

Mawson Infrastructure Group Inc.'s (NASDAQ:MIGI) recent business update aligns with several key insights from InvestingPro. The company's reported 65% year-over-year revenue growth in September 2024 is consistent with an InvestingPro Tip indicating that analysts anticipate sales growth in the current year. This growth trajectory is further supported by the company's quarterly revenue growth of 24.27% as of Q2 2024.

The stock's recent performance has been noteworthy, with InvestingPro data showing a 29.2% return over the last week and a 24.79% return over the last month. This aligns with an InvestingPro Tip highlighting a significant return over the last week and a strong return over the last month. These short-term gains are particularly interesting given the company's expansion in digital colocation and energy management segments.

However, investors should be aware that MIGI's stock price movements are quite volatile, as noted by another InvestingPro Tip. This volatility is reflected in the company's market capitalization of $27.09 million and its high Price / Book ratio of 6.15. Despite the recent positive momentum, the company faces challenges, including not being profitable over the last twelve months and analysts not anticipating profitability this year.

For readers interested in a more comprehensive analysis, InvestingPro offers 14 additional tips for MIGI, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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