Marathon Digital Holdings to Acquire $179 Million Worth of Bitcoin Mining Sites

10:05 pm
December 19, 2023

In a recent announcement, Marathon Digital Holdings disclosed their plans to acquire two Bitcoin mining sites for a total of $179 million. The acquisition, expected to significantly expand Marathon’s mining capacity, has caused a surge in the company’s stock value.

Marathon Digital Holdings has signed a definitive agreement to purchase the two mining sites from Generate Capital. The deal, which involves a cash payment, will see Marathon add a total of 390 megawatts to its mining capacity, reducing the cost of mining BTC.

The company also aims to reduce its bitcoin production costs by approximately 30% through this acquisition. Fred Thiel, Marathon’s chairman and CEO, emphasized that this move provides an opportunity to capitalize on energy hedging opportunities and expand operational capacity.

Stock Surge and Expected Benefits

Following the announcement, the company’s stock surged by 9%, marking a significant increase. Marathon Digital Holdings anticipates increasing its operational hashrate to 50 exahashes over the next 18-24 months as a result of this acquisition. Additionally, the company expects the transfer of the sites in Granbury, Texas and Kearney, Nebraska to be completed in Q1, 2024.

With this acquisition, Marathon Digital Holdings seeks to own 45% of its mining capacity, compared to the current 3%. This strategic move will enable the company to reduce its reliance on third-party sites for mining operations.

As of now, 97% of the company’s megawatts are hosted on third-party sites, making this acquisition a key step towards greater operational independence. The company predicts that this acquisition will lead to a 30% reduction in mining costs once the transfer is complete.

Stock Performance and Cryptocurrency Market

Marathon’s MARA stock has experienced a significant surge, with a 47% increase in the past week and a remarkable 536% year-to-date rise. On the other hand, Bitcoin’s price has seen a 2.3% increase in the past seven days and a substantial 154% year-to-date growth.

In Conclusion

With the acquisition of these mining sites, Marathon Digital Holdings aims to enhance its operational capacity, reduce the cost of mining bitcoin, and achieve greater control over its mining operations. This strategic move is expected to position the company for continued growth and success in the cryptocurrency mining industry.

FAQs

What is Marathon Digital Holdings acquiring?

Marathon Digital Holdings is acquiring two Bitcoin mining sites from Generate Capital for a total of $179 million.

What is the expected impact of the acquisition on Marathon’s mining capacity?

The acquisition is expected to expand Marathon’s mining capacity by 390 megawatts, significantly increasing its operational capability.

How does Marathon Digital Holdings plan to reduce mining costs through this acquisition?

The company aims to own a greater percentage of its mining capacity through this acquisition, which is anticipated to reduce bitcoin production costs by approximately 30%.

What has been the stock performance of MARA and the cryptocurrency market following this announcement?

Post the announcement, MARA stock witnessed a 47% surge in the past week and a remarkable 536% year-to-date rise, while Bitcoin’s price experienced a 2.3% increase in the past seven days and a substantial 154% year-to-date growth.


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