Marathon Digital Holdings has secured a strategic agreement to buy two operational Bitcoin mining sites in a deal worth $179 million. According to a Tuesday announcement, the firm is buying the mining sites from the subsidiaries of Generate Capital.
The two mining sites feature a total of 390 megawatts. Marathon Digital Holdings plans to make the payments in cash from its balance sheet. When this deal is fully completed, it will mark the company’s transition from an asset-light firm to an organization that manages and oversees a diversified portfolio of Bitcoin mining activities.
Meanwhile, prior to its acquisition of this 390 megawatts mining sites, Marathon Digital Holdings already owns a 584 megawatts of Bitcoin mining portfolio. While 3% of this portfolio is managed by the company, the remaining 97% is run by third parties. Now, the acquisition of an additional 390 megawatts means Marathon Digital Holdings currently holds a total of 910 megawatts.
More so, the development means 45% of the portfolio will now be managed by the firm while the remaining 55% will be under the control of third parties. Marathon believes its latest acquisition will help increase its mining pipeline and double its hash rate to 50 exahashes.
Generate Capital, Marathon to complete acquisition deal in early 2024
Generate Capital is expected to transfer the ownership of the centers in Granbury, Texas, and Kearney, Nebraska to Marathon. This deal is subject to customary closing conditions and should be completed in early 2024.
Meanwhile, the CEO of Marathon, Fred Thiel shared some insights into the activities of the firm. According to Thiel, Marathon aims to become one of the top organizations with a diverse portfolio of Bitcoin mining assets. The exec strongly believes the acquisition of the two mining sites remains the next step to achieving such goal.
According to Thiel, the acquisition of those sites provide an opportunity for Marathon to reduce its Bitcoin production costs. Also, he is optimistic that the acquisition will further help the firm harness energy hedging oppprtunities and expand its operational capacity.
Similarly, the financial officer of Marathon, Salman Khan reflected on how the firm has been strengthening its balance sheet by increasing its cash position, and Bitcoin holdings and reducing its debt. Khan further described the acquisition deal with Generate as one of the long-term strategies to enhance Marathon’s balance sheet.
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