Mentioned:
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A multi billion dollar American coal producer is using their surplus electricity for something new: Bitcoin mining.
What’s happening:
- American coal company Alliance Resource Partners (NASDAQ: ARLP) has announced they are currently holding $45M USD of Bitcoin directly as an asset
Why it matters:
- Alliance Resource Partners is one of the first publicly listed coal producers to use excess energy to mine Bitcoin and all of their Bitcoin holdings have come from their own mining operations
Going deeper:
- Due to the increasingly large demand for low cost energy to power Bitcoin mining operations, Alliance Resource Partners is now hosting more than 1,000 mining rigs for other Bitcoin mining companies leveraging surplus electricity from their River View mine located in Kentucky
- Alliance Resource Partners is currently operating more than 3,500 of their own Bitcoin mining rigs
The fine print:
- Alliance Resource Partners has publicly stated they have sold some of their Bitcoin holdings previously and has no intentions to ever use profits from their coal operations to purchase more Bitcoin
The intrigue:
- Bitcoin mining companies have continued to search for new low cost energy sources to power their operations, which previously led MARA Holdings (NASDAQ: MARA) to purchase a wind farm located in Hansford County, Texas
