In a Call for first quarter results Yesterday, Alliance Resource Partners, a $2.8 billion coal mining company trading under the symbol ARLP on the Nasdaq, reported that it is mining bitcoins and currently has 425 btc on its balance sheet.
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Alliance Resources Listed on Nasdaq twitter.com/search?q=%24ARLP&src=ctag&ref_src=twsrc%5Etfw”>$ARLPa $2.8 billion coal mining company is extracting twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoinand currently has 425 twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw”>$btc in its balance sheet.
Additionally, the company has adopted new FASB accounting standards for its holdings. pic.twitter.com/uZomhnuBPz
—Dylan LeClair (@DylanLeClair_) twitter.com/DylanLeClair_/status/1785106188712943993?ref_src=twsrc%5Etfw”>April 30, 2024
“In the second half of 2020, we began mining bitcoin as a pilot project to monetize already paid for but underutilized electrical load at our River View mine,” Cary Marshall, senior vice president and chief financial officer at Alliance Resource Partners, said on the call.
“We have since mined and now own bitcoins valued at approximately $30 million,” he added.
The $30 million figure comes from valuing each of the 425 btc the company owns at approximately $70,500, the price at which bitcoin was trading towards the end of the first quarter of 2024. After taking into account the mining costs of Alliance bitcoins, the company made a net profit of $7.3 million. of bitcoin mining in the first quarter.
The amount of bitcoin Alliance it owns places it in 23rd place in the list of companies who keep bitcoins on their balance sheet.
Joe Craft, president and CEO of Alliance, noted on the call that the company is not necessarily adopting a bitcoin-centric strategy, but is instead approaching its bitcoin mining operation with a high degree of practicality.
“We're selling what we need to cover our expenses, so our exposure is limited,” Craft said.
“We have additional capacity that we are leasing to other bitcoin miners within the data center that we have effectively built for this bitcoin mining to take advantage of the low energy costs that we have,” he added.
For more information about Alliance Resource Partners, visit the company's website. website.
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