Mawson Infrastructure Group (NASDAQ: MIGI) runs on a unique business model of colocation, providing clients with the relevant infrastructure necessary for Bitcoin mining. Given this unique positioning, MIGI stock holds a strong correlation to the prices of BTC.
An Overview of Mawson Infrastructure
Through the colocation business model, Mawson Infrastructure Group (MIGI) essentially functions as a next-generation data center company with a specific focus on blockchain mining. In addition to providing its clients with colocation facilities, data center services, and infrastructure optimization, the company also engages in its own BTC mining. Its market presence is primarily situated in Australia and the US, where it works through digital marketing, direct sales, and referral programs. In 2020, the company saw its annual revenue climb from $900,000 to $4.4 million, whereas the figure stood at a whopping $41.5 million in 2021. The company has set topline guidance for the present year at $80 million.
Forward Prospects for MIGI
Despite the optimism of believers, the global Bitcoin market is presently facing an onslaught of challenges. Recent mining bans from China have seen giant volumes of hash power exiting the overall network, causing strains and pressures on BTC miners across the globe. However, the Mawson management does not see this as a long-term issue, but rather one that will see eventual resolution in the immediate sense, as operators shift to a more optimal location. For these reasons, the company hopes to capitalize on its fast-growing performance, which has continued to sky-rocket, despite the dips seen in BTC prices over the previous months.
It is evident that MIGI stock holds heavy exposure to BTC prices, in a number of ways. This is especially good news for investors who hold a bullish stance on crypto-king. MIGI offers sustained exposure to its growth, which corrects the volatility of directly owning Bitcoin.