Alliance Resource Partners (ARLP) has revealed significant earnings from its Bitcoin mining initiative, which utilizes excess power at its River View mine. In a recent earnings call, Cary Marshall, ARLP’s CFO, described the company’s entry into cryptocurrency mining, which started in early 2020 to utilize electricity that was already paid for but not being used.
As of quarter-end, ARLP reported holding 425 bitcoins on its balance sheet, with an estimated worth of $30 million. After accounting for net costs associated with property, plant, and equipment, the company noted a profit of $7.3 million from its Bitcoin operations.
This news coincided with a 5% increase in ARLP’s stock following the earnings announcement. Marshall clarified that ARLP is not purchasing bitcoins but is strictly mining them using its existing equipment.
Additionally, the company is boosting its profitability by leasing out surplus capacity to other Bitcoin miners, effectively utilizing its low-cost energy infrastructure.
While ARLP’s Bitcoin holdings are relatively small compared to companies like MicroStrategy and Tesla, this unexpected move highlights their ability to adapt and find new revenue streams beyond traditional coal mining.
Despite the boost from these activities, the bitcoins on ARLP’s balance sheet still make up only a minor part of its total assets, showing its innovative way of expanding income sources with existing resources.
