Alliance Resource Partners (ARLP) has reported strong earnings from its Bitcoin mining project at the River View mine. The company’s CFO, Cary Marshall, shared that they started mining cryptocurrency in early 2020 to make use of excess electricity that was already paid for but not utilized.
At the end of the quarter, ARLP held 425 bitcoins on its balance sheet, valued at around $30 million. After factoring in costs related to property and equipment, the company made a profit of $7.3 million from its Bitcoin operations.
This success led to a 5% increase in ARLP’s stock price. Marshall emphasized that ARLP is not buying bitcoins but is solely focused on mining them using their existing equipment.
In addition to their mining activities, ARLP is leasing out extra capacity to other Bitcoin miners, leveraging their low-cost energy infrastructure to boost profitability. Despite the gains from these initiatives, the bitcoins on ARLP’s balance sheet remain a small portion of its total assets, showcasing their innovative approach to generating income with existing resources.