Alliance Resource Partners (ARLP) has reported considerable earnings from its Bitcoin mining venture, which uses excess power at its River View mine. In a recent earnings call, Cary Marshall, ARLP’s CFO, described the company’s entry into cryptocurrencycurrency mining, which began in early 2020 to use electricity that had previously been paid for but had not been used.
The company is increasing its profitability by leasing excess capacity to other Bitcoin miners, so leveraging its low-cost energy infrastructure. Despite the increase from these activities, bitcoins on ARLP’s balance sheet still account for a small portion of its total assets, demonstrating the company’s unique approach to expanding income sources using current resources.
ARLP reported owning 425 bitcoins on its balance sheet at the end of the quarter, valued an estimated $30 million. After deducting net costs for property, plant, and equipment, the company’s Bitcoin activities generated a profit of $7.3 million.
This news corresponded with a 5% gain in ARLP stock after the results report. Marshall explained that ARLP is not purchasing bitcoins, but rather mining them using its existing equipment.
Read also: Morgan Stanley May Empower Brokers to offer Bitcoin ETFs: Report
