Mawson Infrastructure Group (MIGI) AI Stock Analysis

• Market Cap: $8.08M
• Dividend Yield: N/A
• Average Volume (3M): 779.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.22
• Revenue Growth: 36.02%
• EPS Growth: 31.41%
• Country: US
• Employees: 33
• Sector: Financial
• Sector Strength: 79
• Industry: Financial - Capital Markets
• EPS (TTM): -2.64
• Shares Outstanding: 18,792,360
• 10 Day Avg. Volume: 1,929,718
• 30 Day Avg. Volume: 779,033
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.19
• Price to Cash Flow (P/CF): -2.20
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Mawson Infrastructure Group's overall stock score reflects significant financial and technical challenges. Despite strong revenue growth, the company struggles with profitability and financial stability, with a weak balance sheet and negative valuation metrics. Technical indicators suggest bearish momentum. Positive recent corporate events, including strategic growth and leadership changes, offer potential for future improvement, but current risks remain high.

Positive Factors

Operational Expansion

Upon completion and energization of Ohio, Mawson moves its total power under management to 153MW, up from 129MW.

Strategic Shift

Mawson is evolving to a digital compute host from an exclusive bitcoin mining company, indicating a strategic shift in its business model.

Negative Factors

Debt Concerns

The company's debt level is at $21.4M, up from 20.1M in 2Q24, versus less than $6M in cash.

Litigation Risks

Mawson has two lawsuits to work through, one surrounding its Australian-based debts, the other involving the lease on the Sharon site.

Revenue Decline

Bitcoin mining revenue is expected to decline significantly next year, contributing only $3.0M compared to the expected $12.4M in 2024.

Mawson Infrastructure Group Business Overview & Revenue Model

Company Description

Mawson Infrastructure Group (MIGI) is a digital infrastructure provider focused primarily on cryptocurrency mining and high-performance computing. The company is engaged in the deployment and operation of infrastructure to support blockchain technology and digital asset ecosystems. Mawson seeks to capitalize on the growing demand for scalable and efficient infrastructure solutions within the digital economy, offering services that include cryptocurrency mining, hosting, and management of data centers.

How the Company Makes Money

Mawson Infrastructure Group generates revenue through several key streams primarily related to cryptocurrency mining and digital infrastructure services. The company's primary revenue source is from mining cryptocurrencies, where it earns income by solving complex mathematical problems that validate transactions on blockchain networks, earning cryptocurrency rewards in return. Additionally, Mawson offers hosting services for third-party clients who wish to mine cryptocurrencies but lack the necessary infrastructure. This includes providing the physical space, power, cooling, and security necessary to operate mining hardware. Furthermore, the company may engage in strategic partnerships or collaborations to enhance its operations and expand its market presence. Market factors such as the price of cryptocurrencies, energy costs, and technological advancements in mining hardware significantly impact the company's earnings.

Mawson Infrastructure Group Financial Statement Overview

Summary

Mawson Infrastructure Group shows mixed financial performance. While revenue growth is strong at 36%, significant profitability challenges persist with negative EBIT and net income. The balance sheet is weak, with negative equity indicating high financial risk. Cash flow has improved, but high leverage remains a concern.

Income Statement

The company has experienced a significant revenue growth from 2023 to 2024, with a revenue growth rate of approximately 36%. However, it continues to face profitability challenges, evidenced by negative EBIT and net income over the years. Gross profit margin has remained relatively stable, but the net profit margin is deeply negative, indicating difficulties in managing costs and achieving profitability.

Balance Sheet

The balance sheet reveals a concerning financial position with negative stockholders' equity as of 2024, suggesting financial instability. The debt-to-equity ratio is not meaningful due to negative equity, indicating high leverage and potential risk. The equity ratio is also negative, further highlighting the company's financial distress.

Cash Flow

Cash flow analysis shows some improvement in operating cash flow from 2023 to 2024, turning positive, and free cash flow also improved significantly. However, the free cash flow to net income ratio is difficult to evaluate due to consistent net losses, and financing activities have decreased, limiting liquidity options.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
58.22M	59.27M	43.57M	84.39M	43.86M	4.45M
	Gross Profit
3.05M	20.28M	15.01M	36.67M	33.96M	2.01M
	EBIT
-41.74M	-31.15M	-60.32M	-54.24M	-18.71M	-2.44M
	EBITDA
-15.82M	-30.58M	-10.03M	16.85M	-4.59M	-1.19M
	Net Income Common Stockholders
-54.54M	-44.38M	-60.42M	-100.39M	-45.46M	-4.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	6.09M	4.48M	946.26K	5.47M	3.08M
	Total Assets
0.00	61.44M	84.77M	133.33M	145.29M	3.19M
	Total Debt
57.52K	25.28M	21.87M	31.26M	22.97M	287.00K
	Net Debt
57.52K	19.19M	17.39M	30.32M	17.50M	40.00K
	Total Liabilities
89.59K	64.68M	54.38M	57.16M	30.71M	7.34M
	Stockholders Equity
-89.59K	-3.24M	29.24M	77.07M	114.75M	-4.15M
Cash Flow		Free Cash Flow
3.35M	1.60M	-7.90M	-67.78M	-105.22M	-1.52M
	Operating Cash Flow
5.38M	3.56M	-2.55M	14.26M	22.95M	-1.52M
	Investing Cash Flow
-866.58K	-1.12M	10.74M	-32.54M	-128.25M	823.00K
	Financing Cash Flow
-258.58K	-830.07K	-4.65M	13.99M	109.85M	197.00K

Mawson Infrastructure Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MIGI, the sentiment is Negative. The current price of 0.41 is below the 20-day moving average (MA) of 0.51, below the 50-day MA of 0.57, and below the 200-day MA of 1.16, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 38.61 is Neutral, neither overbought nor oversold. The STOCH value of 37.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MIGI.

Mawson Infrastructure Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$13.46B	9.44	9.34%	4.72%	16.14%	-8.80%
RIOT	63 Neutral	$2.58B	19.72	4.35%	―	34.20%	―
MARA	55 Neutral	$4.26B	8.97	18.84%	―	69.38%	30.30%
HUT	49 Neutral	C$1.85B	3.51	2.56%	―	199.41%	―
MIGI	40 Underperform	$8.08M	―	-354.87%	―	36.02%	31.41%
ARBK	37 Underperform	$25.66M	―	242.25%	―	―	―
BITF	36 Underperform	$618.42M	―	-11.98%	―	33.77%	61.73%

Mawson Infrastructure Group Corporate Events

Mawson Infrastructure: Strong 2024 Growth and Strategic Expansion

On January 27, 2025, Mawson Infrastructure Group released an updated Company Presentation, highlighting its robust growth in 2024 with a 136% year-over-year increase in digital colocation revenue and a 36% overall revenue growth. The presentation also emphasized Mawson’s diversified, asset-light revenue streams and strategic participation in energy management programs aimed at optimizing energy costs and enhancing grid reliability, which are expected to strengthen its market position and offer stable, predictable cash flows.

Mawson Infrastructure Group Appoints New Chief Financial Officer

On January 17, 2025, Mawson Infrastructure Group Inc. appointed William C. Regan as Chief Financial Officer, succeeding William ‘Sandy’ Harrison, who will remain as a Senior Advisor. Regan, with 40 years of finance experience, joined Mawson as Deputy CFO in 2024 and has held senior roles in several companies. This leadership change is part of Mawson’s ongoing transformation and growth in the digital infrastructure space, where the company has achieved significant revenue growth and expanded its market offerings.