Marathon Digital Holdings acquires two Bitcoin mines for $179M

Marathon Digital Holdings recently signed a definitive purchase agreement with Generate Capital’s subsidiaries. The agreement will allow Marathon Digital Holdings to acquire two operating Bitcoin mining sites. Based on the terms, Marathon will pay 178.6 million dollars for sites totaling 390 megawatts of capacity.

In other words, Marathon is paying 458,000 dollars per megawatt for two of the best Bitcoin mining sites in the market. The transaction marks Marathon’s first endeavor to own $BTC mining sites. With this development, the company has officially transitioned from an asset organization to managing $BTC mining operations.

As of now, Marathon owns 584 megawatts of capacity, of which 3% reside on websites owned by the company itself. The remaining 97% of the power is hosted by third parties for Marathon.

Once the transaction closes, Marathon will increase its $BTC mining portfolio to 910 megawatts of capacity. The company will then own 45% of the share, while third parties will host the remaining 55%. The development will boost Marathon’s mining pipeline, allowing the company to double its operational hash rate.

The acquisition will allow Marathon to own 390 megawatts of operational capacity. Out of this, 82 megawatts (21%) are currently vacant and available for expansion. Tenants occupy 244 megawatts (63% of the total). Marathon already occupies the remaining 64 megawatts (16%).

After the acquisition is finalized, Marathon will reduce its cost per coin by 30%. Afterward, the company aims to appoint new miners to the vacant 82 megawatts of capacity. After tenants leave the 244 megawatts, Marathon will use the space to maximize its operations and elevate its hash rate.

The company has set seven exahashes of miners, and its first tranche will be delivered and integrated in January 2024.