Marathon Digital Holdings made an announcement on March 15th, revealing its definitive agreement with Applied Digital to acquire a Bitcoin mining facility in Texas for $87.3 million. The purchase will be funded by Marathon’s cash holdings, and the transaction will be finalized once all price adjustments are resolved.
According to Marathon Digital’s blog post, this acquisition will increase the company’s Bitcoin mining capacity to approximately 1.1 gigawatts. This falls just short of the 1.21 gigawatts required to power the fictional “Flux Capacitor” from the iconic “Back to The Future” film series.
Fred Thiel, the chairman and CEO of Marathon, expressed his thoughts on the agreement. He stated that Marathon had an exceptional year in terms of revenue in 2023, with a total of $387.5 million. This marks a significant increase of 229% from the previous year and a staggering 452% growth for the fourth quarter. The surge in revenue was attributed to the Bitcoin rally at the end of 2023 and a 147% rise in Bitcoin production compared to the previous year.
In February, Marathon introduced a new service called “Slipstream,” which allows for direct Bitcoin transaction submissions. This service was designed to expedite large or non-standard transactions on the Bitcoin blockchain.
Looking ahead, mining companies like Marathon Digital will have to navigate the upcoming Bitcoin halving. This event occurs when a specific number of blocks have been mined, and it is expected to take place in mid-April. The halving will have a significant impact on large-scale mining organizations, as 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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