Mawson Infrastructure Group (MIGI) AI Stock Analysis

• Market Cap: $9.45M
• Dividend Yield: N/A
• Average Volume (3M): 256.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.15
• Revenue Growth: 25.45%
• EPS Growth: 28.00%
• Country: US
• Employees: 30
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Capital Markets
• EPS (TTM): -3.18
• Shares Outstanding: 18,707,615
• 10 Day Avg. Volume: 365,550
• 30 Day Avg. Volume: 256,517
• 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: 0

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

Revenue Growth

Mawson released its October month production report, highlighting its co-location revenue of $4.0M, up 18% from the month of September.

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

Financial Performance

Mawson’s financial position at the end of 2Q24 continued to show signs of strain with substantial liabilities leading to a negative working capital of $34.5M.

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 faces significant financial challenges. Despite increasing revenues, the company struggles with profitability, high leverage, and negative equity, posing substantial risks. Positive cash flow developments offer a glimmer of hope, but overall financial health remains precarious.

Income Statement

The income statement reveals significant challenges, with negative net income and EBIT indicating ongoing losses. The gross profit margin for TTM is low at 5.24%, reflecting weak profitability. While revenue has increased compared to last year, the net profit margin remains negative, showing that costs are not sufficiently managed to generate profit.

Balance Sheet

The balance sheet shows high financial leverage, with a negative equity position in the latest TTM period, suggesting financial instability. The debt-to-equity ratio is not calculable due to negative equity, indicating potential risk. The negative stockholders' equity also highlights potential solvency issues.

Cash Flow

Cash flow analysis reveals some positive aspects, such as a shift to positive operating cash flow in the TTM period. However, free cash flow has only recently turned positive, indicating improving cash generation, but the operating cash flow to net income ratio is concerning due to negative net income.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
58.22M	43.57M	84.39M	43.86M	4.45M	870.54K
	Gross Profit
3.05M	15.01M	36.67M	33.96M	2.01M	-2.30M
	EBIT
-41.74M	-60.32M	-54.24M	-18.71M	-2.44M	-3.17M
	EBITDA
-15.82M	-10.03M	16.85M	-4.59M	-1.19M	-3.40M
	Net Income Common Stockholders
-54.54M	-60.42M	-100.39M	-45.46M	-4.93M	-3.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.21M	4.48M	946.26K	5.47M	3.08M	728.00K
	Total Assets
3.40M	84.77M	133.33M	145.29M	3.19M	1.18M
	Total Debt
2.63M	21.87M	31.26M	22.97M	287.00K	22.00K
	Net Debt
-548.00K	17.39M	30.32M	17.50M	40.00K	-696.00K
	Total Liabilities
3.19M	54.38M	57.16M	30.71M	7.34M	641.00K
	Stockholders Equity
212.00K	29.24M	77.07M	114.75M	-4.15M	535.00K
Cash Flow		Free Cash Flow
3.35M	-7.90M	-67.78M	-105.22M	-1.52M	-13.75M
	Operating Cash Flow
5.38M	-2.55M	14.26M	22.95M	-1.52M	-2.06M
	Investing Cash Flow
-866.58K	10.74M	-32.54M	-128.25M	823.00K	81.00K
	Financing Cash Flow
-258.58K	-4.65M	13.99M	109.85M	197.00K	-360.00K

Mawson Infrastructure Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.50
• 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 0.5 is below the 20-day moving average (MA) of 0.53, below the 50-day MA of 0.64, and below the 200-day MA of 1.20, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 40.71 is Neutral, neither overbought nor oversold. The STOCH value of 28.60 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	$14.24B	10.27	8.97%	4.33%	16.38%	-11.94%
RIOT	63 Neutral	$2.60B	21.52	4.35%	―	34.20%	―
MARA	55 Neutral	$4.31B	9.09	18.84%	―	69.38%	30.30%
HUT	49 Neutral	C$1.74B	3.60	2.56%	―	199.41%	―
BITF	44 Neutral	C$536.44M	―	-11.98%	―	45.19%	-33.48%
MIGI	40 Underperform	$9.45M	―	-271.52%	―	25.45%	28.00%
ARBK	37 Underperform	$28.78M	―	242.25%	―	―	―

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.