Nikolas Sargeant
In a recent earnings call, Cary Marshall, the Chief Financial Officer of Alliance Resource Partners (ARLP), disclosed the company's foray into Bitcoin mining. Marshall stated that the initiative commenced in the latter half of 2020 as a pilot project aimed at leveraging the excess electricity capacity at their River View mine.
"At the end of the quarter," Marshall reported, "we had amassed 425 bitcoins, valuing at $30 million. After accounting for property, plant, and equipment costs, we've realized a net gain of $7.3 million."
Following the earnings report, ARLP's stock surged by 5%, surpassing revenue estimates for the period.
Marshall clarified that the company does not engage in direct purchase of Bitcoin but solely focuses on mining operations utilizing existing equipment. Additionally, ARLP has leased out surplus capacity to other Bitcoin miners within its data center, capitalizing on the region's low energy costs.
Despite its entry into Bitcoin holdings, ARLP's cryptocurrency assets remain relatively modest in comparison to industry giants. Data compiled by BitcoinTreasuries.net illustrates MicroStrategy as the leader with holdings valued at $13.5 billion, followed by Tesla with $615 million in Bitcoin reserves.
