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Bitcoin miner Mawson is postponing all major capital expenditures until market conditions normalize

On Tuesday, Bitcoin (BTC) miner Mawson Infrastructure Group announced that it is suspending major capital spending until market conditions normalize. In addition, the company voluntarily reduces its energy consumption, also known as demand response, in view of the market sell-off and the high electricity prices caused by inflation.

Mawson received its last shipment of Canann A1246 ASIC bitcoin miners in June and has no further outstanding payments for bitcoin mining rigs. Regarding the company’s decision, CEO and founder James Manning said:

“Despite a volatile market, Mawson currently continues to mine itself and also participate in energy demand response programs as appropriate. Also, we are fortunate to have no pending contracts to purchase ASIC Bitcoin Miners, allowing us to focus on developing our business -site business as an alternative source of income while suppressing the Bitcoin price.

In its latest monthly update, Mawson announced that it owned over 40,000 bitcoin mining machines with application specific integrated circuits (ASIC). Combined, the rigs have an estimated hash rate of 3.35 exahash per second, which is about 1.675% of the total hash rate of the Bitcoin network. Last year, the company had total revenues of $19.4 million and spent $6.03 million on investing or purchasing real estate and equipment.

Related: Compass Mining Loses Facility After Allegedly Failing to Pay Electricity Bill

The ongoing cryptocurrency bear market has hit bitcoin miners hard, with reports that miners have sold their entire May harvest. Mining revenues in this sector have since fallen to lows set in May 2021. Meanwhile, energy costs have skyrocketed in part due to the aftermath of the Russian invasion of Ukraine. Because of such a mix of risk factors, the overall hash rate of the Bitcoin network has dropped by nearly 25% in just the past two weeks.

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