Marathon Digital buys a $178.6 million mining facility. During the announcement, Marathon Digital Holdings spent $178.6 million on acquiring two Bitcoin mining facilities. The upcoming halving of the Bitcoin mining reward in 2024 is a significant component of this strategic acquisition by Generate Capital, which is anticipated to significantly increase Marathon’s mining capacity. This deal is scheduled to take place in 2024.
As a result of the recent acquisition of these plants in Nebraska and Texas, Marathon’s capacity has increased by a total of 390 megawatts. Marathon Digital boosts This expansion is not simply a big step toward better operational control and efficiency, but also about having a larger footprint.
Before, data centers outside of the company provided 97% of Marathon’s capacity. Because of the purchase, the company will be able to privately own and run 45 percent of its 910 megawatts, which will significantly increase its level of autonomy.
Through this deal, the cost of mining a single bitcoin will be reduced by 30 percent, increasing Marathon’s profitability. Marathon Digital buys Because there is a total capacity of 82 megawatts (MW) available at the locations, there is a possibility for quick development.
In addition, Marathon plans to build additional hardware if future hosting prospects abandon the company. This will allow the company to increase its operating hash rate to fifty exahashes in the following two years.
According to Salman Khan, the chief financial officer, the low level of debt and the deliberate increase in cash and Bitcoin reserves are critical factors. Compared to the same period in the previous year, the corporation achieved a 670 percent rise in sales during the third quarter of 2023. As a result of the increase in their results filed on November 8, they recorded a net income of $64.1 million for the quarter, as well as a considerable increase in the amount of Bitcoin that was produced.