Marathon Digital Holdings Acquires 200 MW Bitcoin Mining Data Center Adjacent to Wind Farms

Marathon Digital Holdings

Marathon Digital Holdings, Inc. (NASDAQ:MARA), one of the world’s largest publicly traded Bitcoin miners and leaders in supporting and protecting the ecosystem for Bitcoin transactions, announced on March 15, 2024 it has entered a definitive purchase agreement to acquire Applied Digital Corporation (“Applied Digital”)’s 200 megawatt Bitcoin mining data center located in Garden City Texas for $87.3 Million; or approximately $437,000 per megawatt prior to any purchase price adjustments or any purchase price increases that might take effect upon adjustment by Marathon from its balance sheet. Marathon will pay this purchase price using cash from its balance sheet when final payment occurs later in 2024.

Marathon has recently completed another acquisition dedicated to Bitcoin mining within four months and increased the proportion of self-owned and operated megawatts within their mining portfolio by 54% compared with when their first two data center acquisitions closed back in January this year, which consisted of 584 megawatts with only 3% directly owned or controlled by Marathon sites directly operated and owned. When complete along with anticipated site expansion in 2024, Marathon’s mining portfolio will increase from 584 megawatts up to 1.1 gigawatts with 54% directly controlled or owned and managed directly by themselves directly owned and controlled sites directly owned and managed directly by themselves and will exceed 54% ownership within its mining portfolio!

Garden City, Texas’ Bitcoin mining data center is conveniently situated adjacent to a wind farm and uses renewable energy exclusively. Built and activated in 2023 by Marathon Energy Services Group Inc, it currently converts approximately 100 megawatts (or approximately 4.5 exahash miners) of electrical inputs (i.e. wind farms) into economic value through Bitcoin mining. Marathon has approximately 25 employees at this site working under their employment.

Marathon’s acquisition of this data center will give it direct ownership over current on-site operations as well as provide access to 100 megawatts of additional capacity – 32 of which should become immediately available upon closing and the remainder subject to regulatory approvals – for expansion purposes. Marathon intends on further increasing this presence at this site in 2024 to accomodate 200-megawatt capacity exclusively dedicated for Bitcoin mining operations by Marathon itself.

Marathon expects that this transaction will provide them with greater influence and security over its operations, expansion opportunities and reduced operating expenses of approximately 20% per coin at their site of operations.

This transaction will be subject to customary closing conditions and should close during the second quarter of 2024.

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