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Marathon Digital acquires Bitcoin mining sites in $179m deal
Marathon Digital secures a cash deal with Generate Capital and a PBC subsidiary to acquire two operational Bitcoin mining farms, expanding its capacity to around 390 megawatts.
As stated in the Dec. 19 release, the transaction marks Marathon’s shift from an asset-light organization to managing a diversified Bitcoin mining portfolio, acquiring its first fully owned sites. Currently holding 584 megawatts, with 3% owned and 97% hosted by third parties, the acquisition will bring the total capacity to approximately 910 megawatts
Following the deal, 45% will be on Marathon-owned sites, expanding opportunities for future growth and potentially doubling the operational hash rate to around 50 exahashes within the next 18-24 months.
As per the agreement terms, Generate will transfer ownership of data centers in Granbury, Texas, and Kearney, Neb., currently operated by third parties, to Marathon in exchange for $178.6 million, or $458,000 per megawatt, subject to adjustments, to be paid in cash from Marathon’s balance sheet. The transaction, contingent on customary closing conditions, is anticipated to conclude in the first quarter of 2024.
This announcement contrasts a report from last month, in which the firm outlined plans for international expansion before the Bitcoin halving. At the time, this change in approach was said to establish the firm as the most geographically diversified miner, potentially resulting in a gradual reduction in production costs