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Marathon Digital Holdings, a Bitcoin mining firm, has finalized a purchase agreement to acquire two active Bitcoin mining locations, which together provide 390 megawatts of capacity.
This represents a crucial step towards enhancing its operational capabilities.
The agreement, valued at $178.6 million, signifies Marathon’s shift from an asset-light model to one that oversees a varied and robust portfolio of Bitcoin mining activities.
Marathon Digital Expands Its Operational Capacity
A recent announcement indicated that this acquisition marks Marathon’s first fully owned mining sites, highlighting a significant change in its business approach.
At present, Marathon’s Bitcoin mining portfolio encompasses 584 megawatts of capacity, with merely 3% directly owned and operated by the company.
Reports also indicated that Marathon Digital has increased its Bitcoin output by 467% over the past year.
Following this acquisition, Marathon’s portfolio is expected to rise to around 910 megawatts, with 45% of the sites owned directly and 55% hosted by third-party providers.
This development coincides with a recent increase in Bitcoin’s price, which is currently at $42,452.
Moreover, the newly acquired sites, situated in Granbury, Texas, and Kearney, Nebraska, present significant opportunities for expansion.
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Marathon intends to utilize the additional 390 megawatts to potentially double its operational hash rate to approximately 50 exahashes within the next 18-24 months.
Additionally, this initiative aligns with Marathon’s ongoing strategy of vertical integration and the establishment of a sophisticated and diverse Bitcoin mining portfolio.
Fred Thiel, Chairman and CEO of Marathon, expressed optimism regarding the acquisition, highlighting the potential for cost savings, energy hedging, and operational enhancements.
Thiel also remarked, “This transaction increases the size of our Bitcoin mining portfolio by 56%. And it also provides us with a roadmap to double our current operational hash rate.”
See Also: Hive Digital Technologies Converts Former EU Data Center Into Crypto Mining Facility
Marathon Digital Purchase Will Reduce Operating Costs
Conversely, Salman Khan, Marathon’s CFO, emphasized the company’s improved financial standing. Khan pointed out that the acquisition was made in cash without incurring additional debt or equity issuance.
Furthermore, this strategic move is projected to lower current operating expenses by 30% and offer significant expansion prospects.
Meanwhile, David Hirsch, Principal at Generate Capital, Marathon’s partner in the deal, praised the company’s leadership within the Bitcoin ecosystem.
However, the agreement allows Generate to concentrate on sustainability efforts, while Marathon acquires physical assets to decrease production costs and support future growth.
The transaction, pending customary closing conditions, is expected to be finalized in the first quarter of 2024.
The post Marathon Digital Acquires Two New Bitcoin Mining Sites For $178.6M appeared first on BitcoinWorld.
