Marathon Digital Acquires Texas-based Bitcoin Mining Facility for $87.3M, Expanding Capacity to 1.1GW
Summary:
Marathon Digital Holdings has purchased a 200-megawatt Bitcoin mining facility in Texas from Applied Digital for $87.3 million. This boosts the company's overall Bitcoin mining capacity to approximately 1.1 gigawatts. This move, according to CEO Fred Thiel, increases Marathon's operational control, reduces costs, and expands capacity. The deal follows Marathon's most successful revenue year in 2023, and precedes the onset of the "Halving" event, which could impact large-scale mining organizations.
On March 15, Marathon Digital Holdings revealed that it has struck a concrete deal with Applied Digital to acquire a 200-megawatt Bitcoin mining facility situated in Texas. The agreement, worth $87.3 million, will be paid in cash from Marathon's reserves, and the deal will be sealed once all price adjustments have been addressed. This acquisition will boost Marathon Digital's total Bitcoin extraction capacity to about 1.1 gigawatts, just under the 1.21 gigawatts used to run the fictional "Flux Capacitor" in the "Back To The Future" movie series.
Fred Thiel, Chairman and CEO of Marathon Digital, shared his thoughts on the deal: “This acquisition magnifies our control over our present operations, cuts down our cost per coin by about 20% at this site, and gives us an extra 100 megawatts to expand our capacity. After closing this deal and the expected site expansion this year, our Bitcoin mining activities will encompass around 1.1 gigawatts of capacity, 54% of which will be spread across sites that we directly own and manage, across eleven locations on three different continents.”
As noted by Cointelegraph, Marathon Digital posted its highest revenue year in 2023, pulling in $387.5 million, a surge of 229% from the previous year and 452% for the last quarter. This revenue uplift was linked to the late 2023 Bitcoin surge and a jump of 147% in Marathon Digital's annual Bitcoin production. In late February, Marathon introduced "Slipstream,” a novel direct Bitcoin transaction submission service, aimed to expedite large and/or non-standard transactions on the Bitcoin blockchain.
Moving forward, firms like Marathon Digital will need to traverse the imminent "Halving.” Anticipated for mid-April, this event will occur after a certain number of blocks have been mined on the Bitcoin blockchain. This means the rewards for mining a block will be halved, from 6.25 BTC to 3.125 BTC per block.
Published At
3/15/2024 10:51:16 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.