© Reuters.
AultAlliance, Inc. (NYSE American: AULT) announced today that the company has made the decision to retain between 20% and a minimum of 5% of the bitcoins it produces in its financial statements. This strategic action is part of a broader initiative by the Company to change its asset management tactics to improve business value and increase shareholder returns.
Milton “Todd” Ault III, Founder and Executive Chairman of Ault Alliance, commented on the change, saying: “Our belief that bitcoin is a sustainable investment category aligns with the views of Michael Saylor, Executive Chairman of MicroStrategy, as presented in their research reports on the subject. We are modifying our strategy to benefit from the immediate and future potential of this digital currency.”
Ault Alliance, through its wholly-owned subsidiary, Sentinum, Inc. (“Sentinum“), has made considerable progress in Bitcoin mining, with December 2023 being the month with the highest monthly production rate of Bitcoin mining operations in the company’s history. Sentinum mined approximately 151 bitcoins during this month. The Michigan data center accounted for approximately 77 bitcoins, while the remaining 74 bitcoins came from mining equipment located at Core Scientific, Inc. This production rate for the month translates to an estimate of $6.9 million, projecting an annual production rate for current bitcoin mining operations of nearly $83.3 million, assuming a bitcoin value of around $46,000.
Kenneth S. Cragun, chief financial officer of Ault Alliance, said: “The updated financial reporting guidelines will require companies to record bitcoin at its fair market value in their financial statements, with variations reflected in net profits for each reporting cycle. Our accounting team is prepared to manage the new financial reporting and disclosure obligations associated with keeping bitcoin on our financial records, ensuring compliance with regulations and optimal asset management. “
This choice highlights Ault Alliance’s commitment to following changes in the digital economy by strategically reviewing its asset management practices.
For more information about Ault Alliance and its subsidiaries, Ault Alliance advises shareholders, investors and any other interested parties to consult the public information and announcements of Ault Alliance accessible in the Investor Relations area at www.Ault.com or to theaddress www.sec.gov.
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