Marathon Digital Holdings announced on March 15 a definitive agreement with Applied Digital to acquire a 200-megawatt (MW) Bitcoin mining facility in Texas for $87.3 million. The purchase will be made in cash from Marathon’s holdings, finalizing once all price adjustments are resolved.
With this acquisition, Marathon’s total Bitcoin mining capacity will reach around 1.1 gigawatts, nearly matching the 1.21 gigawatts required to power the fictional “Flux Capacitor” from the Back to The Future films.
Fred Thiel, Marathon’s chairman and CEO, emphasized the benefits of the transaction, including increased operational control, a 20% reduction in cost per coin at the site, and an additional 100 megawatts of capacity for expansion. Thiel highlighted the diversification of Marathon’s mining portfolio across eleven sites on three continents.
Marathon Digital had a successful revenue year in 2023, with $387.5 million in revenue, up 229% from the previous year, driven by the late 2023 Bitcoin rally and a 147% increase in Bitcoin production year-over-year. The company’s recent introduction of “Slipstream,” a direct Bitcoin transaction submission service, aims to streamline large or non-standard transactions on the Bitcoin blockchain.
As the Bitcoin halving approaches, expected in mid-April, mining companies like Marathon Digital will face challenges due to the halving of block rewards from 6.25 BTC to 3.125 BTC per block. This event could significantly impact large-scale mining operations, requiring strategic adjustments to maintain profitability in the evolving Bitcoin mining landscape.
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