Miner Mawson Sells Texas Sites for $8.5M to Fuel Growth

Mawson Infrastructure, the Bitcoin miner, has just closed a deal with Singapore-based investment fund Mainnet Capital's M Turing VCC Oracle Phase 1 Fund for $8.5 million in cash and stablecoins to sell its sites in Texas. The sale of Luna Squares Texas LLC, which owns the contracts and leases for the sites in Midland, Texas, will help Mawson reduce its debt and finance future expansions across its other sites.

Since September 2022, Mawson has been focusing on its operations in Pennsylvania and has been shedding weight from its other sites. In September, it sold its facility in Georgia to CleanSpark, another Bitcoin miner. Mawson plans to use the funds from the sale to acquire more mining rigs and support 4.2 exahash/second (EH/s) of mining computing power by the end of the second quarter.

The sale also has implications for bankrupt crypto lender Celsius Network, which had about 10,000 machines hosted by Luna Squares LLC as of the end of December. According to court filings, Celsius loaned $20 million to Mawson in February 2022, and the two firms discussed another $20 million loan last June. Luna Squares holds $15.3 million in Celsius deposits, but didn't plan to add more Celsius machines until the loan went through.

Overall, Mawson's sale of its Texas sites is a strategic move that will help the company reduce debt and fuel growth. It will be interesting to see how the sale affects Celsius Network and whether it will have any impact on the broader crypto market.