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Aussie Crypto Miner Going Online in Bitcoin’s Best Month Rally

Inside a cryptocurrency mining rig

Australia’s largest bitcoin mining operations, Mawson Infrastructure Group Inc. (NASDAQ:MIGI) has recently entered into a partnership with renewable energy provider Quinbrook Infrastructure Partners in late October 2021. Mawson Infrastructure raised US37 million ($AU50 million) prior to its IPO on Nasdaq earlier this year at a $US1 billion valuation, after being refused by the ASX to be listed locally.

Set in Byron Bay, New South Wales, Mawson’s mining operations will provide a total 5,000 petahashes per second (PH/s) to the global Bitcoin mining network by 2022. Combined with a current market capitalization of $700M, this would make Mawson it one of the most efficient and undervalued public bitcoin miners in the world.

NASDAQ:MIGI has a Marketcap/PH of only 0.13

In addition, 100% mining power of Mawson will be powered by renewable energy such as solar and wind power. The energy source will be generated mainly by Quinbrook Infrastructure Partners, who are specialist investment manager with a strong focus on ESG investment and asset management across the US, UK, and Australia.

What does this mean for BTC and traders in the crypto market?

The cryptocurrency market endured a major crash back in 19 May 2021, after seeing most crypto pairs losing at least 60% value. Within five months, the market sharply bounced back, with many major crypto pairs currently testing back its all-time-high level.

After this crash, miners all over the world have been accumulating bitcoin in their balance sheet at very low prices, creating a “supply shock” in the cryptocurrency markets.­ According to Kraken Intelligence, Bitcoin supplied by miner has been decreasing sharply by more than 10% since July 2021.

Bitcoin Miner Supply dropped by more than 10% since July 2021. Source: Kraken Intelligence

When supply is controlled, or “squeeze” by an entity, or large group of people, it tends to create an upward pressure on the short-term effect on a commodity price (take OPEC control of oil production, for example). Developments of mining operators such as Mawson Infrastructure Group signals that there is heightened interest in the cryptocurrency market that creates liquidity in this asset class. This explains the price of BTC recovering sharping, appreciated by approximately 90% in the past 3 month.

The price of Bitcoin reached a record high of US$67,016 (AU$89,000) on October 20, 2021.

Bitcoin rally since July 2021

Bitcoin is still the most popular cryptocurrency It currently holds a total market dominance of 44.1% over the whole cryptocurrency market. The second most popular cryptocurrency, Ethereum also reached a new record high of $US4,400 (AU$5,800).

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