Alliance Resource Partners Dives into Bitcoin Mining, Holds $30 Million Worth of BTC
Alliance Resource Partners (ARLP), a prominent coal mining company based in Tulsa, has made waves in the financial world by revealing its foray into Bitcoin mining during its first quarter 2024 earnings call. The company disclosed that it has accumulated a substantial amount of Bitcoin, valued at around $30 million by the end of the quarter.
The decision to venture into Bitcoin mining was born out of the company’s desire to utilize excess power at its mining operations, particularly at the River View mine. Cary Marshall, ARLP’s senior vice president, explained that the project began as a pilot initiative in the latter half of 2020 and has since proven to be a lucrative opportunity for the company.
Despite holding 425 BTC, Alliance Resource does not actively purchase Bitcoin and only sells a portion of its holdings when necessary to cover expenses. Marshall revealed that the company mined 69 BTC during the quarter, selling 25% of its stash and retaining 51 Bitcoin. Moving forward, ARLP will closely monitor Bitcoin prices post-halving to determine production costs.
In response to inquiries about future Bitcoin mining expectations, Marshall indicated that the company could potentially obtain around 60% of the projected 175 to 190 BTC for the year, with the remainder being sold to cover operating expenses.
The news of Alliance Resource’s Bitcoin mining activities has sparked interest and discussion within the cryptocurrency community, with many users on social media applauding the company’s innovative use of excess energy for profitable gains. Some users praised ARLP for adding Bitcoin to its balance sheet as a hedge against FX volatility, while others commended the company for tapping into the cryptocurrency market in a resourceful manner.
Overall, Alliance Resource Partners’ strategic move into Bitcoin mining has not only proven to be financially rewarding but has also showcased the company’s ability to adapt and innovate in a rapidly evolving market landscape.
