Alliance Resource

Alliance Resource Partners is a company primarily engaged in coal mining, but since 2020, it has expanded its business boundaries through Bitcoin mining. Its cryptocurrency-related business model is: Utilizing surplus electricity for mining: Deploying Bitcoin mining machines at the River View coal mine in Oklahoma to convert previously underutilized electricity into computational resources, participating in Bitcoin mining through the blockchain network. Data center leasing: In self-built data centers, in addition to meeting their own mining needs, excess computing capacity is also rented out to other Bitcoin miners to attract industry participants with low energy costs. Light Asset Strategy: The company clearly states that it will not actively purchase Bitcoin; the Bitcoin it holds comes entirely from mining profits, and it controls market risk by periodically selling a portion of its Bitcoin.

The profit models related to cryptocurrency include: Mining Revenue: By consuming excess electricity to generate Bitcoin, directly obtaining cryptocurrency assets. According to Q1 2024 data, its mining business achieved a net profit of 7.3 million dollars and holds 425 Bitcoins (worth approximately 30 million dollars at that time). Computing power rental income: Renting out the remaining computing power of the data center to other miners, utilizing the low-cost energy advantages of the coal industry to form a stable cash flow supplement. Asset appreciation: The increase in the balance sheet value brought about by the rise in Bitcoin prices. For example, if the price of Bitcoin rises from $70,500 in Q1 2024 to a higher level, the value of the 425 Bitcoins held will also increase accordingly.

Improvement of resource utilization rate: converting the abandoned electricity from coal mines into economic value to avoid energy waste. Taking the River View mine as an example, the mining project generates direct revenue from previously idle electricity resources while reducing carbon emissions. Business Diversification: As the traditional coal industry faces pressure from energy transition, the cryptocurrency business provides a new source of income. In Q1 2024, its cryptocurrency-related revenue accounted for approximately 5% of the company's total profit, reducing reliance on the single coal market. Industry Demonstration Effect: As a case of transformation for traditional energy companies, its model provides a reference for other resource-based companies, namely achieving the value redevelopment of traditional infrastructure through technological integration.

Bitcoin ( BTC ): Direct impact: Injecting new bitcoins into the market through mining, contributing a total of 425 BTC from 2020 to 2024, accounting for approximately 0.02% of the total global bitcoin issuance during the same period. Indirect impact: Its mining strategy (such as selling part of BTC to cover costs) may increase market selling pressure in the short term, but a long-term holding strategy conveys recognition of the long-term value of cryptocurrency, affecting investor confidence. Other cryptocurrencies: Currently, there is no public involvement in Ethereum (ETH), Solana (SOL), and other cryptocurrencies, with the business focus concentrated on Bitcoin.