Crypto mining firm Mawson Infrastructure Group is exiting Texas following the $8.5 million sale of its local subsidiary and lease agreements and contracts related to operating in the state.
In an April 19 announcement, Mawson said it had arranged to sell 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. Chief Executive James Manning said the sale is part of the company's strategy to focus its operations in Pennsylvania and reduce existing debt.
Mawson announced in June 2022 during the cryptocurrency crash that it planned to suspend major capital expenditures until market conditions normalized. The company then sold its Georgian Bitcoin, The sale of the mining facility to CleanSpark for $33 million makes Texas one of its last U.S. operations outside of Pennsylvania. The announcement of the sale comes as the Texas government is considering a bill that would largely eliminate incentives for crypto mining companies operating in the state. Senate Bill 1751, which passed the Texas Senate Commerce Committee and the full Senate, is likely to move 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 companies participating in a program designed to compensate them for reducing load on the state’s grid would have their incentives limited. Also, many companies that operate data centers will not receive state tax breaks starting in September. “The decision to sell the asset was made long before any proposal was made by the state of Texas,” Liam Wilson, Mawson’s chief operating officer, told Cointelegraph. “[The] site is undeveloped and is a real The green space is no longer in line with our future plans."
Ray Li, chief executive of Mainnet Capital, the Singapore-based buyer's investment manager, said the M Turing VCC Oracle Phase 1 fund would participate in National Grid's load response program, adding that Texas has a "supportive regulatory environment." . Cointelegraph reached out to Mainnet Capital for additional comment, but did not hear back by the time of publication. Crypto advocacy groups and individuals opposing the anti-mining bill will gather in Austin on April 25 as part of a rally to air their concerns directly to Texas lawmakers. Cointelegraph will be present and report back.
