This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.
Skeptics likely were surprised to see the total market capitalization of cryptocurrencies exceed $1.6 trillion in 2021.
Despite a downward price movement as a result of the Chinese government’s crackdown on cryptocurrencies, Bitcoin — considered the world’s most popular cryptocurrency — constitutes more than 60% of the market capitalization with a valuation of more than $800 billion.
The adoption of cryptocurrencies is booming around the world. In 2021, there were over 300 million cryptocurrency users across the globe and more than 18,000 businesses accepting cryptos as a mode of payment.
What’s Trending In The Crypto World? Cryptos have arguably become a popular asset class, but financial institutions haven’t given them as much attention — some have even dismissed them as a fad, and many firms have been reluctant to invest in crypto because of its volatility.
In the past few years, big financial institutions have adopted cryptos and have worked relentlessly to recruit crypto experts. This could be a signal that these institutions are bullish about the future of crypto. Some of the firms include JPMorgan Chase & Co. (NYSE: NYSE:JPM), Wells Fargo & Co. (NYSE: NYSE:WFC) and Goldman Sachs Group Inc. (NYSE: NYSE:GS).
Fintechs also have increasingly adopted crypto. Some of the top fintech companies are making it easier for their users to transact in crypto. Last year, PayPal Holdings Inc . (NASDAQ: NASDAQ:PYPL) and its subsidiary Venmo started allowing their users to trade crypto on their platforms. Cash App, owned by Block Inc. (NYSE: SQ) allows its customers to send and receive Bitcoin.
Because most Bitcoin mining farms run on power derived from fossil fuels, Bitcoin mining is often criticized because of its huge carbon footprint. As the world goes green, colocation seems to be a trend in the crypto space. Colocation allows miners to deploy and run their mining equipment in a third-party data center. The owner of the data center offers the resources and technical services required for the machines to function properly.
Mawson Infrastructure Group Inc. (NASDAQ: MIGI) says it plans to jump on the colocation bandwagon.
Making Moves? Mawson recently announced a partnership with Foundry Digital and Celsius Mining LLC. A document filed with the Securities and Exchange Commission (SEC) shows that on March 1, Mawson signed a 100-megawatt (MW) hosting colocation agreement with Celsius Mining LLC. A few days later, Mawson announced a 12 MW colocation deal with Foundry Digital.
Mawson expected that under the deal with Celsius, the mining hardware would be deployed inside its modular data centers by the end of the first quarter. The deal brings the total cohosting agreements for Mawson subsidiary Luna Square (NYSE:SQ) LLC to about 116 MW.
According to Mawson CEO James Manning, the crypto mining industry is experiencing a shortage of energy and energy infrastructure, which is causing the demand for hosting to keep rising. Mawson reportedly invested heavily in energy long ago, which may be helping the company to take on customers in its hosting colocation business.
“Mawson will be reporting its hosting revenues and cost of revenues at the end of each quarter and will provide other commentary on our hosting business in our monthly updates, and we are very happy with the margins and returns from its hosting business,” Mawson Chief Commercial Officer Nick Hughes-Jones said. “You could say we are turning our competition into our customers.”
This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.
Photo by Quantitatives on Unsplash
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.