Marathon Digital Holdings made an announcement on March 15th, revealing that it has reached a definitive agreement with Applied Digital to acquire a 200-megawatt (MW) Bitcoin mining facility in Texas for $87.3 million.
According to the agreement, Marathon will pay for the purchase in cash from its holdings, finalizing the transaction once all price adjustments are resolved.
In a blog post by Marathon Digital, it was stated that this acquisition will increase the company’s total Bitcoin mining capacity to approximately 1.1 gigawatts. This is just short of the 1.21 gigawatts needed to power the fictional “Flux Capacitor” from the Back to The Future movies.
Fred Thiel, Marathon’s CEO and Chairman, commented on the agreement:
As reported by Cointelegraph, Marathon Digital had its most profitable revenue year in 2023, generating $387.5 million. This was a significant increase of 229% compared to the previous year, and a staggering 452% increase for the fourth quarter.
The rise in revenue was attributed to the late 2023 Bitcoin rally and a 147% increase in Bitcoin production for Marathon Digital compared to the previous year.
In late February, Marathon introduced a new service called “Slipstream,” which enables direct Bitcoin transaction submissions. Its purpose is to facilitate and expedite large or non-standard transactions on the Bitcoin blockchain.
Looking ahead, mining companies like Marathon Digital will need to navigate the upcoming Bitcoin halving. This event, expected to occur in mid-April once a certain number of blocks have been mined on the Bitcoin blockchain, could have a significant impact on large-scale mining organizations. The rewards for mining a block will be reduced by 50%, from 6.25 BTC to 3.125 BTC per block.
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Cointelegraph provides the latest news and comprehensive coverage on the Bitcoin halving.