Crypto mining firm Mawson Infrastructure Group will be exiting Texas following an $8.5-million sale of its local subsidiary as well as lease agreements and contracts related to operating in the state.
In an April 19 announcement, Mawson said it had arranged the sale of its subsidiary Luna Squares Texas to Singapore-based fund manager M Turing VCC Oracle Phase 1 Fund for $8.5 million in cash and stablecoins. CEO James Manning said the sale was conducted as part of a strategy to focus the company’s operations in Pennsylvania and reduce existing debt.
Mawson announced in June 2022 — amid the crypto crash — that it planned to suspend major capital expenditures until market conditions normalized. The firm subsequently sold its Georgia Bitcoin (BTC) mining facility to CleanSpark for $33 million, leaving Texas as one of its last United States-based operations outside of Pennsylvania.
Stage 2 of Mawson’s Midland, PA facility is officially online! A huge thank you to our team on the ground, for making this happen. Looking forward to seeing the full 120 MW come online over Q2! $MIGI pic.twitter.com/NEGla77IqJ
— Mawson (@Mawsoninc) April 17, 2023
The sale announcement came amid the Texas government considering a bill aimed at largely removing incentives for crypto mining firms operating in the state. Senate Bill 1751, which has moved through the Texas Senate Committee on Business and Commerce and a full Senate vote, will likely be put to a vote in the state’s House of Representatives in the coming weeks.
Under the current wording of the bill, Texas-based crypto mining firms participating in a program intended to compensate them for load reductions on the state’s power grid would have their incentives capped. In addition, many of the companies operating data centers would also not receive an abatement on state taxes starting in September 2023.
“We had made our decision to sell the asset long before anything came up from the TX government,” Mawson chief operating officer Liam Wilson told Cointelegraph. “[The] site was undeveloped, a true greenfield site, and didn’t fit into our future plans any more.”
Related: ‘Don’t Mess with Texas Innovation’ — Advocates criticize bill removing crypto mining incentives
Ray Li, CEO of Mainnet Capital — the investment manager of the Singapore-based buyer — said M Turing VCC Oracle Phase 1 Fund would participate in the state energy grid’s load response program, adding Texas had a “supportive regulatory environment.” Cointelegraph reached out to Mainnet Capital for comment but did not receive a response at the time of publication.
Crypto advocacy groups and individuals opposed to the anti-mining bill will be gathering in Austin on April 25 as part of a rally to voice their concerns directly to Texas lawmakers. Cointelegraph will be in attendance to report on the situation.
Magazine: Crypto City: Guide to Austin