Ault Alliance Enhances Bitcoin Strategy

Ault Alliance's Strategic Bitcoin Move

Ault Alliance, Inc. has announced a strategic shift in its asset management approach by deciding to retain between five to twenty percent of the Bitcoin it mines on its balance sheet. This move is aimed at enhancing enterprise value and increasing stockholder returns. The company sees Bitcoin as a sustainable asset, aligning its strategy with insights from industry leaders like MicroStrategy.

Record-Breaking Bitcoin Mining Performance

The company, through its subsidiary Sentinum, Inc., achieved a record in December 2023, with significant milestones in Bitcoin mining. Sentinum mined approximately 151 Bitcoins during the month, marking the highest monthly run rate in the company's history. This resulted in a monthly revenue of about $6.9 million, projecting an annual run rate of approximately $83.3 million, based on the Bitcoin price of $46,000. The mining activity was split between Sentinum's Michigan data center and hosted mining machines with Core Scientific, Inc.

Financial Management and Compliance

Ault Alliance is prepared to navigate new accounting standards that require Bitcoin to be measured at fair value on the balance sheet. The financial team is equipped to handle the changes, ensuring compliance and optimizing asset utilization. This strategic decision reflects Ault Alliance's commitment to adapting to the evolving digital economy by refining its asset management strategy.

By adopting this approach, Ault Alliance aims to leverage Bitcoin's potential for both short-term gains and long-term growth, reinforcing its position in the digital asset space.