The $2.8 billion Alliance Resource Partners (ARLP), known as the coal giant in the global energy market, announced an unexpected move in its last earnings call. The company announced that they started Bitcoin mining to utilize the excess energy they produce in their facilities.

This move has the potential to be one of the first initiatives to turn to digital assets in the traditional energy sector. ARLP announced that they started Bitcoin mining as a pilot project in the second half of 2020 to convert the idle energy in their facilities into money. In this way, the company achieved significant gains in a short time.

In the conference call where he announced his earnings, the company’s chief financial officer, Cary Marshall, explained their motivation for starting the project by saying, “We started Bitcoin mining as a pilot project to convert the already paid but underused electricity load in our River View mine into money.” The success of the pilot project showed itself in the balance sheet.

Marshall announced that at the end of the quarter, the company had 425 Bitcoins on its balance sheet, valued at $30 million. This figure represents an increase of $7.3 million after accounting for the net costs of property, plant and equipment. Following the earnings report, ARLP stock price also rose 5%.

However, the company’s relationship with Bitcoin is not just about mining. ARLP emphasizes that it does not buy Bitcoin and only mines it with the equipment it owns. Marshall said that instead of purchasing cryptocurrencies, they rented their extra capacity to other companies mining Bitcoin in the data center they established, taking advantage of low energy costs.

These statements suggest that ARLP approaches crypto mining as an energy management strategy rather than a Bitcoin investment. This move of the company has the potential to build a new bridge between the traditional energy sector and blockchain technology.

ARLP’s Bitcoin balance sheet has a relatively small volume compared to the giants of the industry. Data compiled by BitcoinTreasuries.net reveals that MicroStrategy is at the top with $13.5 billion in Bitcoin assets. Tesla, led by Elon Musk, is another institution that attracts attention with its $615 million Bitcoin investment.

In global markets, Bitcoin is currently trading above $63,000, up 1.3%. ARLP’s Bitcoin move brings the energy sector’s relationship with digital assets back to the agenda. The future course of this initiative could set an important example for both traditional energy companies and the cryptocurrency market.

All in all, although ARLP’s move into Bitcoin mining was an unexpected move, it shows that the company is taking an innovative approach to energy management. This step may pave the way for more collaborations and innovative projects between the traditional energy sector and blockchain technology in the future.