Share this article
Coal Miner Alliance Resource Dabbles In Crypto Mining, Mines 425 BTC
The $2.8 billion coal giant said that it is mining bitcoin with the excess power it generates.
Updated Apr 30, 2024, 6:55 a.m. Published Apr 30, 2024, 6:52 a.m.
Make us preferred on Google
- Alliance Resources says it has mined 425 BTC with excess power at its facility
- The company is the latest publicly listed entity to have bitcoin on its balance sheet
NASDAQ-listed coal miner Alliance Resource Partners (ARLP) said in an earnings call that it has mined $30 million in bitcoin using excess power at its facilities.
“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,” Cary Marshall, the firm’s chief financial officer, said during an earnings call.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Marshall said that at the end of the quarter, the company had 425 bitcoins on its balance sheet – which it is valuing at $30 million – and after factoring in the net costs of property, plant, and equipment, it was up $7.3 million.
ARLP was up 5% after the earnings, which also saw the company beat revenue estimates.
Marshall said that the company isn’t “buying bitcoin or anything of that nature” and is only mining bitcoin with the equipment it has.
“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,” he continued.
In the grand scheme of things, ARLP’s bitcoin on the balance sheet holdings are relatively small. Data compiled by BitcoinTreasuries.net shows that MicroStrategy has the largest holdings at $13.5 billion. Other notable entries on the list include Tesla, which has $615 million.
Bitcoin is currently trading above $63,000, up 1.3%, according to CoinDesk Indices data.
More For You
Struggling Coinbase gets price target cut from JPMorgan ahead of Thursday earnings
Shares of COIN are down nearly 30% this year, with analysts warning that softer trading and crypto prices are likely to weigh on revenue.
What to know:
- JPMorgan cut its December 2026 price target on Coinbase to $290 from $399 ahead of fourth-quarter earnings, citing weaker crypto trading volumes, softer prices and slower USDC growth.
- The bank still rates Coinbase Overweight, but projects a sharp sequential drop in earnings and EBITDA, even after factoring in a full quarter of revenue from the Deribit derivatives acquisition.
- Other firms, including Barclays and Compass Point, are more cautious or bearish, warning that retail trading, blockchain rewards and subscription and services revenue may miss expectations and remain closely tied to overall crypto prices.
Top Stories
