April 19, 2024
Marathon Readies for Bitcoin Halving, Acquires $179M
Bitcoin News

Marathon Readies for Bitcoin Halving, Acquires $179M

Marathon Digital will acquire two Bitcoin mining sites from Generate Capital for $178.6 million, doubling its hash rate in two years. The operational capacity of the two sites totals 390 megawatts, located in Texas and Nebraska.

Marathon’s Bitcoin mining portfolio will reach 910 megawatts post-acquisition, with 45% owned and operated by the company. The deal aims to reduce the cost of mining a single Bitcoin by 30% and facilitate the deployment of 82 megawatts of capacity with Marathon’s mining hardware. The company plans to increase its hash rate to 50 exahashes over the next two years.

“By acquiring the sites in Granbury, Texas and Kearney, Nebraska from Generate, we have an opportunity to reduce our bitcoin production costs at these sites, to capitalize on energy hedging opportunities, and to expand our operational capacity.”

Marathon chairman and CEO Fred Thiel notes the strategic diversification of Bitcoin mining assets over the past year. CFO Salman Khan highlights the immediate accretive impact of the transaction, reducing operating costs by 30% and offering expansion opportunities. Marathon has seven exahashes of miners on order, with the first tranche set for delivery in January 2024.

In the third quarter of 2023, Marathon Digital experienced a 670% YoY revenue surge and a fivefold increase in Bitcoin production, reaching a net income of $64.1 million. Improved financial results were attributed to a 467% spike in Bitcoin production, rising from 6.7 mined BTC per day in Q3 2022 to 37.9 BTC per day in Q3 2023. Marathon actively seeks to bolster its mining capacity ahead of the Bitcoin mining reward halving in 2024, maintaining a strategic financial approach.

Image By Sketchepedia

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