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Applied Digital announced on March 15 that it has finalized the sale of its 200-megawatt (MW) Bitcoin mining facility to Marathon Digital Holdings for $87.3 million.
In the announcement, the Nasdaq-listed mining firm indicated that the mining facility is located in Garden City, Texas. The anticipated completion date for the transaction is the second quarter of 2024.
Applied Digital Announces $87.3 Million Deal
Some proposed adjustments to the acquisition agreement could result in Marathon Digital Holdings paying a total purchase price of $97.3 million.
Applied Digital CEO Wes Cummins remarked that this acquisition would enhance and provide the company with additional financial resources.
He also noted that this transaction would reinforce the groundwork for long-term growth and operational excellence. Ultimately, it will enable Applied Digital to focus on developing HPC data centers, marking a strategic shift.
Bloomberg reported that Marathon plans to acquire additional mining locations in anticipation of Bitcoin’s halving event.
The facility was constructed in 2023. Prior to this acquisition, Marathon acted as a hosting client and had previously utilized the site under a hosting agreement. Marathon will continue to be a hosting client at Applied Digital’s North Dakota data center even after the acquisition of the Texas facility.
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Applied Digital also reaffirmed its dedication to enhancing and expanding its HPC (high-performance computing) capabilities.
The company also announced a partnership with Together AI earlier this week. This collaboration will enable Together AI to utilize Applied Digital’s Nvidia H100 graphics processing units (GPUs) for its operations.
Numerous companies within the Bitcoin mining sector are now branching out into the generative AI field. Among them is the Nasdaq-listed mining firm, which is now poised to explore generative AI technologies.
Marathon Digital’s Bitcoin Mining Activities
In late February, Marathon reported a self-mining hash rate of 28.7 exahashes per second (EH/s). With Bitcoin’s next halving set for April 20, the block reward is projected to drop from 6.25 BTC to 3.125 BTC.
To enhance its position for this event, Marathon has strategically increased its financial resources. As of January 31, Marathon held over $1 billion in unrestricted cash and bitcoin combined. Financial forecasts suggest this will elevate the company’s hash rate to an estimated 50 EH/s by the end of 2025.
Furthermore, Marathon has made significant strides to expand its mining capacity. In January, the company acquired two mining sites in Nebraska and Texas for around $179 million (390 MW).
This recent acquisition of Applied Digital’s Texas Bitcoin mining facility further cements Marathon’s status as a key player in the digital asset mining sector.
The post Marathon Digital Expands Bitcoin Mining Presence with Texas Acquisition appeared first on Cryptonews.
