Marathon’s $178.6M Acquisition Supercharges Bitcoin Mining Power

Kelvin Munene Murithi
December 19, 2023
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Breaking: Bitcoin Miner Marathon Digital Raises $1B To Buy More Bitcoin

Marathon Digital Holdings has announced the acquisition of two Bitcoin mining sites for $178.6 million. This strategic purchase from Generate Capital is set to bolster Marathon’s mining capabilities considerably, especially in anticipation of the upcoming Bitcoin mining reward halving in 2024.

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Doubling Down on Capacity and Efficiency

These newly acquired sites in Texas and Nebraska add a combined 390 megawatts to Marathon’s existing capacity. This expansion is not just about size; it’s also a leap towards greater operational control and efficiency. Previously, 97% of Marathon’s capacity came from third-party data centres. Post-acquisition, the company will own and operate 45% of its 910 megawatts, marking a significant shift towards greater autonomy.

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Cost-Effective Mining and Expansion Potential

The deal is to reduce Marathon’s cost of mining a single Bitcoin by 30%, substantially improving profitability. The sites offer an immediate expansion potential with 82 megawatts of vacant capacity. Furthermore, as existing hosting clients vacate, Marathon plans to deploy additional equipment, aiming to double its operational hash rate to 50 exahashes in the next two years.

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Marathon Digital’s Prudence in Preparation for Halving

Marathon’s approach to this expansion has been marked by financial prudence. The company’s Chief Financial Officer, Salman Khan, highlights the deliberate increase in cash and Bitcoin reserves while keeping debt low. This cautious fiscal strategy aligns with the company’s preparation for the Bitcoin mining reward halving event in 2024.

Marathon’s strategic moves have been reflected in its financial performance. The company reported a 670% surge in year-on-year revenue for the third quarter of 2023. This growth translated into a substantial increase in Bitcoin production and a net income of $64.1 million for the quarter, as stated in their November 8 results filing.

Read Also: BNB Rallies As Binance Announces NFPrompt (NFP) on Launchpool

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary . With a Bachelor's degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets. His work has been featured across top industry publications such as Coingape, Cryptobasic, MetaNews, Cryptotimes, Coinedition, TheCoinrepublic, Cryptotale, and Analytics Insight among others, where he consistently provides timely updates and insightful content. Kelvin’s focus lies in uncovering emerging trends in the crypto space, delivering factual and data-driven analyses that help readers make informed decisions. His expertise extends across market cycles, technological innovations, and regulatory shifts that shape the crypto landscape. Beyond his professional achievements, Kelvin has a passion for chess, traveling, and exploring new adventures.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.