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Alliance Resource Partners Mines $30 Million Worth of Bitcoin
Alliance Resource Partners (ARLP), a leading coal mining company listed on the NASDAQ, has successfully mined $30 million worth of Bitcoin by leveraging excess power at its facilities.
Background of ARLP’s Bitcoin Mining Project
During an earnings call, Cary Marshall, the CFO of ARLP, revealed that the company initiated a pilot project in late 2020 to utilize the surplus electricity already paid for at its River View mine.
Bitcoin Holdings and Financial Impact
As of the latest quarter, ARLP holds 425 BTC valued at $30 million. The company reported a $7.3 million increase after accounting for net costs of property, plant, and equipment.
Market Response and Financial Performance
Following the positive news, ARLP’s stock surged by 5%, surpassing revenue estimates. The company’s proactive approach to Bitcoin mining has garnered investor confidence.
Comparison with Other Entities
ARLP’s Bitcoin holdings are relatively modest compared to other entities. For instance, MicroStrategy leads with holdings worth $13.5 billion, while Tesla holds approximately $615 million in Bitcoin.
Bitcoin Market Trends
Bitcoin experienced a period of low volatility, leading to a gradual price decline, closing the week around $63,100. This downward trend follows a prolonged period of growth.
Reasons for Price Decline
The recent price decline in Bitcoin is attributed to profit-taking by investors. Many investors who entered the market during previous downturns are capitalizing on recent price appreciation.
ETF Trading Volume
Trading volume for BTC ETFs decreased, indicating a slowdown in trading activity. The cumulative trading volume for these funds reached $235.7 billion, with a daily volume of about $1.9 billion.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
