ARTICLE AD BOX
On a Q1 earnings call yesterday, Alliance Resource Partners, a coal mining company worth $2.8 billion that trades under the ticker ARLP on the Nasdaq, reported that it’s mining bitcoin and currently holding 425 BTC on its balance sheet.
Nasdaq listed Alliance Resources $ARLP, a $2.8b coal mining company, is mining #bitcoin, and currently holds 425 $BTC on its balance sheet.
The company has additionally adopted the new FASB accounting standards for its holdings. pic.twitter.com/uZomhnuBPz
“In the second half of 2020, we started mining bitcoin as a pilot project to monetize already paid for yet underutilized electricity load at our River View mine,” said Cary Marshall, Senior Vice President and CFO of Alliance Resource Partners, on the call.
“Since then we have mined and now own bitcoin valued at approximately $30 million,” he added.
The $30 million figure comes from valuing each of the 425 BTC the company holds at approximately $70,500, the price at which bitcoin was trading toward the end of Q1 2024. After factoring in Alliance’s bitcoin mining expenses, the company saw a net profit of $7.3 million from Bitcoin mining in Q1.
The amount of Bitcoin Alliance holds ranks it 23rd on the list of companies that hold bitcoin on their balance sheet.
Joe Craft, President and CEO of Alliance, pointed out on the call that the company isn’t necessarily pivoting to a bitcoin-centric strategy but, instead, approaching its bitcoin mining operation with a high degree of practicality.
“We are selling what we need to cover our expenses, so our exposure is limited,” said Craft.
“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 added.
For more information on Alliance Resource Partners, visit the company’s website.