Marathon Digital is looking to double its hashrate in the next few years. A $178.6 million acquisition sets in motion the expansion of its Bitcoin mining operations in Texas and Nebraska.
Marathon Digital Makes Over A Hundred Million Deal
Florida-based Marathon Digital just used its $178.6 million stash to take more slice of the Bitcoin mining sector. The firm said it purchased Generate Capital’s plants in Granbury, Texas, and Kearney, Nebraska, to boost its mining capacity by 390 megawatts. Crunching the numbers, it just paid $485,000 per MW increase.
The addition of the facilities is expected to intensify Marathon Digital’s total Bitcoin mining capacity to 910 MW while speeding up its hashrate to around 50 EH/s within the next 18 to 24 months. The resulting exahashes performed per second are roughly double their current capabilities.
Marathon Digital presently owns 3% of its 584 MW facilities. The start of operations of its new fully-owned plants will increase its stake by 45%.
Furthermore, the acquisitions will help the Bitcoin miner cut down its coin generation expenses by 30%.
Statements from Key Officials of Marathon Digital
“For the past year, Marathon has been vertically integrating as we transition into a more sophisticated and mature organization with a diversified portfolio of Bitcoin mining technologies and assets, and the acquisition of these sites is the next step in that evolution,” said Marathon Digital Chair and CEO Fred Thiel in a press release.
“We have spent the past year strengthening our balance sheet by increasing our cash position, adding to our bitcoin holdings, and reducing our debt to prepare for the halving and to ensure we can capitalize on accretive opportunities as they present themselves,” added Marathon CFO Salman Khan.
How the Market Reacted to Marathon Digital’s Acquisitions
Marathon Digital Holdings, Inc. (MARA) shares pumped by 11% as soon as the buyouts were made public on Tuesday. This also caused a chain reaction in other Bitcoin mining stocks like Cipher, Terrawulf, and SOS Limited, which grew between 9% to 14%. On a broader scope, the movement of these investments nudged the S&P 500 up by 0.6%.
The momentum of Marathon Digital continued to build up to $23.95 at 2:00 PM EST on Wednesday until eventually retracing to $22.10 at market close, which is still 0.59% over the previous day’s close. Meanwhile, MARA has shown a tremendous 32.26% rise in the past five days, 11.79% spike in the past month, and 550% surge on a year-to-date (YTD) basis.