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HomeCryptocurrenciesBitcoinMawson Infrastructure to Sell Texas Sites for $8.5M to Singapore Fund Manager

Mawson Infrastructure to Sell Texas Sites for $8.5M to Singapore Fund Manager

Bitcoin miner Mawson Infrastructure (MIGI) is selling its Texas-based mining sites to a Singaporean fund for $8.5 million in cash and stablecoins. The sale of Luna Squares Texas LLC, which holds the contracts and leases for the sites in Midland, Texas, is being made to Mainnet Capital’s M Turing VCC Oracle Phase 1 Fund, according to a Wednesday press release by Mawson.

Mawson is shifting its focus to Pennsylvania and divesting its Texas operations to streamline its business. In September, Mawson sold its Georgia facility to CleanSpark (CLSK). The sale proceeds will be used to reduce debt and finance the expansion of Mawson’s other mining sites, including the purchase of more mining rigs, as per the company’s statement.

The end of the second quarter is expected to see Mawson with enough infrastructure to support 4.2 exahash/second (EH/s) of mining computing power.

Luna Squares LLC, a subsidiary of Luna Squares Texas LLC, held nearly 10,000 machines for Celsius, a bankrupt cryptocurrency lender, as of the end of December 2022, according to court documents. In February 2022, Celsius had loaned $20 million to Mawson, and the two firms discussed another $20 million loan in June. According to the bankruptcy filings, Luna Squares did not plan to add more Celsius machines as specified in their contract until the loan went through. Luna Squares has $15.3 million in Celsius deposits, according to the bankruptcy filings.

Sell of Mawson’s Texas Sites

Mawson Infrastructure (MIGI) has agreed to sell Luna Squares Texas LLC, which holds the contracts and leases for its Texas-based mining sites, to Mainnet Capital’s M Turing VCC Oracle Phase 1 Fund for $8.5 million in cash and stablecoins. This move is part of the company’s strategy to focus on Pennsylvania and streamline its operations.

Proceeds of the sale will be used to pay off debts and expand Mawson’s other mining sites by purchasing more mining rigs. The company expects to have enough infrastructure to support 4.2 exahash/second (EH/s) of mining computing power by the end of Q2.

Bankrupt cryptocurrency lender Celsius had nearly 10,000 machines held by Luna Squares LLC, a subsidiary of Luna Squares Texas LLC, as of December 2022. Luna Squares holds $15.3 million in Celsius deposits, as per the bankruptcy filings. In February 2022, Celsius loaned Mawson $20 million, and another $20 million loan was discussed in June.

Conclusion

The sale of Luna Squares Texas LLC is expected to be completed soon, with Mawson Infrastructure utilizing the proceeds to reduce debt and expand its operations in Pennsylvania. The purchase by Mainnet Capital’s M Turing VCC Oracle Phase 1 Fund marks a significant development in the growing cryptocurrency industry, indicating the increasing demand for mining infrastructure.

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