Mawson Infrastructure Group Reports 26.4% Revenue Decline in Q1 2025

Mawson Infrastructure Group Inc. reported its financial results for the first quarter of 2025, revealing total revenues of $13.8 million, a decrease of 26.4% from $18.8 million in the same period of 2024. The decline was primarily attributed to a significant drop in digital assets mining revenue, which fell from $7.5 million to $0.3 million, largely due to the April 2024 halving event and increased global network difficulty. In contrast, digital colocation revenue increased by 27% to $10.4 million, driven by an expansion in customer base and enhanced service capabilities. Energy management revenue also rose by 24% to $3.1 million, reflecting improved participation in energy management programs.

The company's operating expenses for the quarter totaled $5.3 million, down from $14.7 million in the prior year, primarily due to a reduction in depreciation and amortization expenses, which decreased from $8.0 million to $1.5 million. This reduction was linked to a higher number of fully depreciated assets. However, selling, general, and administrative expenses rose to $5.8 million from $3.5 million, driven by increased legal and litigation-related costs. Mawson reported a net loss of $0.3 million for the quarter, a significant improvement compared to a net loss of $20.0 million in the first quarter of 2024.

Mawson's balance sheet as of March 31, 2025, showed total assets of $57.9 million, down from $61.4 million at the end of 2024. Current liabilities decreased to $56.9 million from $61.9 million, while the company reported a stockholders' deficit of $1.4 million, an improvement from a deficit of $3.2 million at the end of the previous year. The company’s cash and cash equivalents stood at $5.5 million, a decrease from $6.1 million as of December 31, 2024.

Strategically, Mawson has focused on enhancing its digital infrastructure capabilities and expanding its colocation services. The company entered into a Master Colocation Agreement with Cantaloupe Digital LLC, providing approximately 64 MW of colocation capacity. Mawson is also actively exploring various avenues to enhance liquidity, including potential equity issuances and discussions with capital providers. The company continues to face challenges related to its debt obligations, with $21.8 million in outstanding short-term loans, all classified as current liabilities.

Looking ahead, Mawson's management has expressed concerns regarding its ability to continue as a going concern, citing substantial doubt due to negative working capital and accumulated deficits. The company plans to pursue operational improvements and explore additional revenue opportunities to stabilize its financial position. However, the ongoing legal disputes and the need for substantial capital to meet operational and debt obligations remain significant challenges for the company.