Following a strategic maneuver, shares of Mawson Infrastructure Group Inc. (NASDAQ: MIGI) are going through a notable upward trend. As of the latest check, MIGI stock has surged to $1.56, reflecting a significant increase of 17.26%.
New AI/HPC Colocation Agreement
This week, Mawson Infrastructure (MIGI) secured a pivotal agreement with BE Global Development Limited, entering into a binding AI/HPC or Artificial Intelligence/High-Performance Computing colocation business arrangement. The agreement entails providing an initial 20 megawatts (MW) of digital infrastructure dedicated to AI/HPC colocation services.
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This capacity will be supplied for the first two years of a six-year contract at a set, predefined cost. Because this alliance has the potential to speed the development of AI and HPC technologies, it is strategically significant. By extending Mawson Infrastructure’s scope to encompass AI, HPC, and digital assets, the deal demonstrates the company’s growing proficiency in digital infrastructure.
This positioning enhances MIGI’s competitive edge as a provider of advanced digital infrastructure platforms, crucial for high-performance computing and AI applications. The company anticipates the AI and HPC infrastructure market to surpass $200 billion by 2030 and is committed to expanding its footprint within this burgeoning sector.
Revenue and Future Prospects
Under the new 20 MW agreement, Mawson Infrastructure will deliver AI/HPC colocation services to BE Global’s AI deployment, with the customer deploying NVIDIA GPUs. The initial 20 MW capacity is slated for deployment in the first quarter of 2025, potentially generating approximately $92 million in revenue during the first two years and an estimated $285 million over the six-year term.
Additionally, Mawson Infrastructure and BE Global have signed a non-binding letter of intent (LOI) to potentially expand the initial 20 MW to a total of 144 MW, thereby augmenting the overall AI and HPC colocation capacity by sixfold.
This expansion will provide a consistent, high-margin revenue stream that is in line with Mawson Infrastructure’s strategic growth objectives. Over time, the company’s profits potential is expected to be greatly increased by the anticipated growth in revenue and the improved gross margins.
