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Marathon Ramps Up Mining Might with $87M Data Center Acquisition
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Marathon Ramps Up Mining Might with $87M Data Center Acquisition

Marathon Digital strengthens bitcoin mining infrastructure with acquisition of 200MW data center ahead of halving event.
Anisha Pandey
By: Anisha Pandey
Mar 17, 2024
3 min read
Marathon Ramps Up Mining Might with $87M Data Center Acquisition

In latest Marathon Digital news, the renowned player in the bitcoin mining space, is strategically fortifying its mining infrastructure as the bitcoin halving event approaches. In a significant development announced on March 15, the company disclosed its acquisition of Applied Digital’s 200-megawatt data center located in Garden City, Texas, a move aimed at bolstering its mining capabilities and adapting to evolving market conditions.

Marathon Digital News: $87 Million Acquisition

The acquisition, valued at $87.3 million, underscores Marathon’s proactive approach to expanding its mining portfolio and enhancing operational efficiency. With this latest addition, Marathon’s self-owned and operated megawatts in its Bitcoin mining portfolio are set to surge to 54%, marking a significant increase from its previous holdings. The press release reads:

“Following the close of this acquisition and the anticipated expansion of the site in 2024, Marathon will have increased the number of megawatts in its mining portfolio to 1.1 gigawatts, 54% of which will reside on sites directly owned and operated by the Company.”

The acquired Bitcoin mining data center, situated in Garden City, Texas, boasts proximity to a wind farm and predominantly relies on renewable energy sources. Marathon plans to leverage this renewable energy infrastructure to further enhance its sustainability efforts and reinforce its commitment to eco-friendly mining practices.

20% Reduction in Cost Per Coin

Notably, the latest acquisition of the bitcoin mining data center in Texas follows Marathon’s recent data center control in Granbury and Kearney Nebraska.

Fred Thiel, Marathon’s chairman and CEO, expressed enthusiasm about the acquisition.

He highlighted the move’s potential to optimize operational costs and provide a solid foundation for future growth. Thiel emphasized the strategic significance of the transaction by stating:

“This transaction increases our influence over our current operations, reduces our cost per coin by approximately 20% at the site, and provides us with an additional 100 megawatts of capacity in which to expand.”

The transaction, subject to customary closing conditions, is expected to conclude in the second quarter of 2024, paving the way for Marathon to consolidate its operational footprint and capitalize on emerging opportunities in the bitcoin mining sector.

Wes Cummins, CEO and Chairman of the Board at Applied Digital, expressed confidence in Marathon, emphasizing the mutually beneficial nature of the transaction and the alignment of both companies’ long-term strategic objectives.

Miners Invest Billions Amid Bitcoin Halving

As bitcoin halving approaches, mining companies intensify efforts to secure cost-effective power sources. As per a report by Bloomberg, miners have invested over $1 billion collectively in specialized computers since February 2023, with CleanSpark Inc. and Riot Platforms Inc. leading the charge with investments of $473 million and $415 million, respectively.

This massive investment aims to bolster operational efficiency and secure favorable electricity rates. However, looming regulatory challenges, such as the recently proposed 30% excise tax on electricity usage for mining operations in the Biden administration’s 2025 budget proposal, cast uncertainty over the future profitability of mining ventures.

As the industry braces for regulatory changes and the halving event, Marathon’s strategic acquisitions and operational initiatives position it as a leader in the burgeoning bitcoin mining sector.

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