Marathon Digital Ups 2024 Hash Rate Target to 50 EH/s Amid Increased Capacity
Summary:
Marathon Digital plans to boost its 2024 hash rate target from 35-37 exahashes per second to 50 EH/s, citing increased capacity due to recent acquisitions. The company's CEO, Fred Thiel, stated that no additional fundraising is necessary. Marathon's hash rate currently sits at 24.7 EH/s. The firm also reported a 4.5% increase in stock value in after-hours trading following the announcement, rounding off a 15% rise since the fourth Bitcoin halving event.
Marathon Digital, a prominent Bitcoin mining company, has revealed plans to boost its 2024 hash rate target from 35-37 exahashes per second (EH/s) to 50 EH/s. The company cites increased capacity owing to recent acquisitions as the reason for this ambitious target. Marathon's CEO, Fred Thiel, affirmed that this goal is achievable with their existing capacity and won't require additional fundraising. Recent acquisitions contributing to this expanded capacity include the $87.3 million purchase of a 200 megawatt Bitcoin mining center from Digital Applied, and two more mining sites from Generate Capital amounting to 390 megawatts for $179 million.
Marathon currently operates with a hash rate of 24.7 EH/s, leading competitors Core Scientific and Riot Platforms who have hash rates of 16.9 EH/s and 12.4 EH/s respectively. If accomplished, the 50 EH/s target will represent a more-than-double growth in Marathon's hash rate since early 2024.
Marathon's stock (MARA) saw a dip of 0.42% to $19.01 on April 25, however, it bounced back by 4.5% in after-hours trading following the announcement. In the wake of the fourth Bitcoin halving event on April 20, Marathon's stock has enjoyed a 15% increase, which is consistent with market trends.
The halving event brought the block subsidy down to 3.125 Bitcoin, equivalent to $200,000 at current rates. Despite this cut, miners experienced a record $128 average transaction fee on the halving day, bringing in higher earnings than before the halving. The initial demand primarily came from memecoin and nonfungible token (NFT) enthusiasts aiming to inscribe "rare satoshis" via the Runes protocol. That said, transaction fees have since dropped to $28.20, as per April 24 data from YCharts.
Published At
4/26/2024 5:07:20 AM
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