Mawson Infrastructure Group Expands into AI and HPC Markets with Multimillion-Dollar Deal

Mawson inks multi-million AI/HPC colocation deal By Investing.com

Mawson Infrastructure Group Inc. (NASDAQ: MIGI), a U.S.-based digital infrastructure provider, has entered into a significant agreement to supply artificial intelligence and high-performance computing (AI/HPC) colocation services. The contract with BE Global Development Limited involves an initial provision of 20 megawatts (MW) of infrastructure, with a six-year term and a potential cumulative revenue of approximately $285 million. The initial 20 MW capacity is slated for deployment in the first quarter of 2025 and is expected to yield around $92 million in potential revenue for Mawson within the first two years. The agreement also includes a non-binding letter of intent to potentially expand the collaboration to 144 MW, which could significantly increase Mawson's AI and HPC colocation capacity and services. According to Rahul Mewawalla, CEO and President of Mawson, this agreement not only demonstrates the company's capability in digital infrastructure but also strategically positions it in the growing AI and HPC market. He anticipates the overall AI and HPC infrastructure market to expand to over $200 billion by 2030. BE Global Development Limited's CEO, Sath Ganesarajah, expressed enthusiasm for the partnership, highlighting plans to deploy NVIDIA (NASDAQ:NVDA) GPUs, including H100s, to support the growth of innovative AI/HPC customers. Ganesarajah also noted the potential for expanding their partnership with Mawson, given the rapid growth expected in the AI/HPC sector. This move into AI and HPC colocation services is a complement to Mawson's existing digital assets operations, aiming to create a stable, recurring revenue stream with high margins and additional growth opportunities. Mawson recently saw the departure of Craig Hibbard from his role as chief development officer, effective February 6, 2025. The company stated that the departure was due to personal reasons and not related to any disagreements with the company's management or operational results. Mawson also recently appointed Kaliste Saloom as its General Counsel and Corporate Secretary, effective June 28, 2024. Saloom, previously acting as Corporate Secretary, is now officially taking on the role with an annual salary of $225,000. His responsibilities include receiving a performance bonus and an annual grant of restricted stock units valued at $50,000, subject to the discretion of the company and its board. As Mawson Infrastructure Group Inc. (NASDAQ: MIGI) embarks on its new venture into AI and HPC colocation services, the company's financial health and market performance become even more critical for investors. According to InvestingPro data, Mawson has a market capitalization of $19.1 million, indicating its size relative to competitors in the sector. Despite the company's ambitions, it operates with a significant debt burden and may have difficulty making interest payments on its debt, as highlighted by two InvestingPro Tips. These challenges are reflected in its negative P/E ratio of -0.25 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at -0.28, signifying that the company is not currently profitable. Moreover, Mawson's revenue growth presents a mixed picture. While there has been a quarterly revenue growth of 144.72% in Q1 2024, the last twelve months saw a decrease of 24.73%. This volatility is echoed in the company's stock price movements, with a significant return of 22.89% over the last week, yet a steep decline of 57.42% over the last six months. Investors should note that Mawson's stock generally trades with high price volatility, which could be a factor to consider in their investment strategy. For those interested in a deeper analysis, InvestingPro offers additional insights on Mawson, including more detailed financial metrics and analyst projections. There are currently 16 additional InvestingPro Tips available, which can provide a comprehensive understanding of Mawson's financial position and future prospects. Visit InvestingPro for these exclusive insights at https://www.investing.com/pro/MIGI.

Mawson Infrastructure Group Inc. Expands into AI and HPC Markets and Announces the Signing of AI/HPC Colocation Agreement for 20 MW

Mawson Infrastructure Group Inc. announced that it has entered into a binding AI/HPC (Artificial Intelligence/High-Performance Computing) colocation business agreement (the ?Agreement?) with BE Global Development Limited ("customer" or "BE") to provide an initial 20 megawatts (MW) of digital infrastructure for AI/HPC colocation services at a fixed, pre-determined price for the first two years of the Agreement, and with an initial six-year contract term. The new 20 MW AI/HPC colocation business agreement has Mawson providing AI/HPC colocation services for the customer?s AI deployment, and the customer shall deploy NVIDIA GPUs. The initial 20 MW of capacity is expected to be deployed in the first quarter of 2025 and could generate approximately $92 million of potential revenue to Mawson during the first 2-years of the Agreement and approximately $285 million of total cumulative revenue over the 6-year initial contract term of the Agreement. In addition, Mawson and the customer have also signed a non-binding letter of intent (LOI) to increase the initial 20 MW for AI/HPC colocation services to a total of 144 MW over time, which has the long-term potential to increase the total AI and HPC colocation capacity and services by 6x. Mawson?s expansion into providing AI and HPC colocation business services complements Mawson?s overall business model with the addition of a stable, recurring, long-term and high-margin revenue stream from the expected increase in additional growth opportunities. With the expected growth of revenue and gross margins, the entry into AI and HPC colocation infrastructure services is expected to significantly enhance Mawson?s earnings power over time. Expanding into AI and HPC colocation services business, coupled with Mawson's established digital assets operations, creates a powerful digital infrastructure platform enabling sustainable growth while increasing shareholder value in the rapidly evolving digital infrastructure landscape across AI, HPC, and digital assets.