Crypto mining firm Mawson Infrastructure Group is bidding farewell to Texas, selling its local subsidiary, Luna Squares Texas, for $8.5 million in cash and stablecoins to Singapore-based M Turing VCC Oracle Phase 1 Fund. This move comes amidst Texas’ consideration of Senate Bill 1751, which could significantly reduce incentives for crypto mining operations in the state.
Mawson’s CEO, James Manning, claims the sale is part of a strategy to focus on operations in Pennsylvania and reduce debt. This follows Mawson’s suspension of capital expenditures during the 2022 crypto crash and the sale of its Georgia Bitcoin mining facility for $33 million.
The Texas anti-mining bill, if passed, would cap incentives for load reductions on the state’s power grid and remove tax abatements for data centers. Mawson COO Liam Wilson, however, insists that the decision to sell was made before any Texas government actions.
The buyer, M Turing VCC Oracle Phase 1 Fund, plans to participate in the state energy grid’s load response program. Mainnet Capital’s CEO Ray Li, the investment manager of the Singapore-based fund, commended Texas’ “supportive regulatory environment.”
As the Texas government weighs the pros and cons of Senate Bill 1751, the crypto mining industry faces an uncertain future in the state. The bill has already moved through the Texas Senate Committee on Business and Commerce and passed a full Senate vote. It is now poised for a vote in the state’s House of Representatives in the coming weeks.
In response to the potential impact of the bill, crypto advocacy groups and individuals opposed to the anti-mining legislation plan to gather in Austin on April 25 for a rally to voice their concerns directly to Texas lawmakers. The outcome of the anti-mining bill could have a significant impact on the industry, given the many crypto mining firms operating in Texas.
Meanwhile, other states are keeping a close eye on the situation in Texas, considering the implications of similar legislation on their own crypto mining industries. As crypto mining continues to grow in popularity, regulatory environments must strike a balance between encouraging innovation and addressing environmental and energy concerns.
While Mawson Infrastructure Group’s exit from Texas is a significant event for the company, the broader implications for the crypto mining industry remain to be seen. As the state government debates the merits of the anti-mining bill, the future of crypto mining in Texas and beyond hangs in the balance.