tl;dr
Alliance Resource Partners (ARLP), a NASDAQ-listed coal miner, announced that it has mined $30 million worth of bitcoin (BTC) using excess power at its facilities. The company reported that it had 425 bitcoins on its balance sheet, valued at $30 million. ARLP clarified that it is not purchasing bitc...
Alliance Resource Partners (ARLP), a NASDAQ-listed coal miner, revealed that it has mined $30 million worth of bitcoin (BTC) using excess power at its facilities. The company reported that it had 425 bitcoins on its balance sheet, valued at $30 million. ARLP clarified that it is not purchasing bitcoin but is solely mining it with its existing equipment, utilizing excess capacity by renting it out to other bitcoin miners. Despite the relatively small size of its bitcoin holdings, ARLP's earnings call led to a 5% stock increase, with the company surpassing revenue estimates. This news comes as bitcoin is trading above $63,000.
According to Cary Marshall, the firm’s chief financial officer, “In the second half of 2020, we started mining bitcoin as a pilot project to monetize the already paid-for yet underutilized electricity load at our River View mine.” Marshall stated that at the end of the quarter, the company had 425 bitcoins on its balance sheet – valued at $30 million – and after factoring in the net costs of property, plant, and equipment, it was up $7.3 million. ARLP's stock rose 5% after the earnings call, during which the company beat revenue estimates. Marshall emphasized that the company isn’t “buying bitcoin or anything of that nature” and is only mining bitcoin with the equipment it has, further noting, “We do have some extra capacity that we’re renting out to other bitcoin miners within the data center that we’ve effectively built for this bitcoin mining to take advantage of the low energy costs we have.”
ARLP’s bitcoin holdings are relatively small compared to other publicly listed entities. Data compiled by BitcoinTreasuries.net shows that MicroStrategy has the largest holdings at $13.5 billion, while Tesla holds $615 million. Bitcoin is currently trading above $63,000, up 1.3%, according to CoinDesk Indices data.
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