Coal Giant Alliance Resource Partners Embraces Crypto Mining, Acquires 425 BTC

Coal mining giant Alliance Resource Partners (ARLP) has ventured into cryptocurrency mining, utilizing excess power at its facilities to mine 425 BTC, valued at approximately $30 million. The publicly traded company joins the growing list of entities holding bitcoin on their balance sheets. While ARLP emphasizes that it is not actively purchasing cryptocurrency, it continues to mine bitcoin with existing equipment and rents out excess capacity to other miners.

Coal Giant Alliance Resource Partners Embraces Cryptocurrency Mining, Acquiring 425 BTC through Excess Energy Utilization

Nashville, Tennessee, April 30, 2024 - In a significant development for the energy and cryptocurrency industries, publicly traded coal mining firm Alliance Resource Partners (ARLP) has disclosed that it has mined approximately 425 Bitcoin (BTC) with excess power generated at its facilities. This move marks ARLP as the latest large-scale company to incorporate cryptocurrency holdings into its balance sheet.

During an earnings call, Cary Marshall, ARLP's Chief Financial Officer, revealed the company's foray into Bitcoin mining as a strategic initiative to monetize underutilized electricity capacity at its River View mine. Marshall emphasized that ARLP is not engaging in speculative cryptocurrency purchases but solely using existing infrastructure for Bitcoin mining.

"We do have some extra capacity that we're renting out to other Bitcoin miners within the data center that we've effectively built for this Bitcoin mining to take advantage of the low energy costs we have," Marshall stated.

ARLP reported that as of the end of the quarter, it held 425 BTC on its balance sheet, valued at approximately $30 million. After factoring in net costs related to property, plant, and equipment, the company realized a $7.3 million gain on its Bitcoin mining operations.

The news has been met with positive market sentiment, with ARLP's stock price rising by 5% following the earnings announcement. The company also surpassed revenue expectations, adding to investor optimism.

It is worth noting that ARLP's Bitcoin holdings are relatively modest compared to some other major corporations. According to data compiled by BitcoinTreasuries.net, MicroStrategy remains the largest holder of Bitcoin, with an estimated balance of $13.5 billion. Tesla, another notable name on the list, holds approximately $615 million worth of Bitcoin.

At the time of writing, Bitcoin is trading at approximately $63,000, representing a 1.3% increase from its previous value. This rise in value further reinforces the growing interest and adoption of cryptocurrencies worldwide.

The decision by ARLP to embrace cryptocurrency mining underscores the increasing acceptance of digital assets within traditional financial markets. As companies continue to explore innovative ways to enhance profitability, the integration of cryptocurrency mining may become more prevalent in the future.

About Alliance Resource Partners (ARLP):

Alliance Resource Partners is a leading coal producer and marketer in the United States. The company operates approximately 30 coal mines in the Northern and Eastern Appalachian Basin. ARLP's primary customers include electric utilities, industrial users, and metallurgical coal customers.

About Bitcoin:

Bitcoin is a decentralized digital currency created in 2009 by an unknown individual or group using the pseudonym Satoshi Nakamoto. It operates independently of central banks or governments and uses blockchain technology to secure and verify transactions. Bitcoin has gained significant popularity as a store of value and medium of exchange in recent years.