In the ever-evolving landscape of cryptocurrency, Marathon Digital Holdings has made a groundbreaking move that’s set to reshape its role in Bitcoin mining. Recently finalizing a monumental deal worth $179 million, Marathon Digital Holdings has inked an agreement to acquire two robust Bitcoin mining sites, marking a pivotal transition from asset ownership to managing the core operations of BTC mining.

Under the definitive purchase agreement with Generate Capital’s subsidiaries, Marathon Digital Holdings is set to gain ownership of two operational Bitcoin mining sites boasting a combined capacity of 390 megawatts. This strategic move comes at a price of $178.6 million, equating to approximately $458,000 per megawatt and solidifying Marathon’s footprint in the competitive Bitcoin mining market.

Prior to this acquisition, Marathon boasted ownership of 584 megawatts in capacity, with a mere 3% attributed to the company’s owned sites. The overwhelming majority, constituting 97%, was hosted by third parties on Marathon’s behalf.

Post-transaction closure, Marathon’s Bitcoin mining portfolio is poised to skyrocket to 910 megawatts of capacity. The company will command a 45% stake in this portfolio, while third-party entities will host the remaining 55%. This expansion is expected to effectively double Marathon’s operational hash rate, propelling its mining capabilities to new heights.

Of the 390 megawatts of operational capacity acquired, 82 megawatts—equivalent to 21%—are currently unoccupied and primed for expansion. Presently, tenants occupy 244 megawatts (63% of the total), while Marathon already utilizes the remaining 64 megawatts (16%).

Post-acquisition, Marathon anticipates a remarkable 30% reduction in its cost per coin, signaling improved operational efficiency and profitability. The company has ambitious plans to onboard new miners for the vacant 82 megawatts, optimizing every inch of their expanded capacity. Additionally, once tenants vacate the 244 megawatts, Marathon intends to maximize operations within these spaces, further amplifying its hash rate.

This acquisition significantly boosts Marathon’s existing portfolio, currently standing at 584 megawatts of capacity. Of this capacity, a mere 3% is owned directly by the company, while the remaining 97% is hosted by third-party entities on behalf of Marathon.

Post-transaction closure, Marathon’s BTC mining portfolio is slated to surge to an impressive 910 megawatts of capacity, with the company directly owning 45% and third parties hosting the remaining 55%. Such a monumental stride is expected to result in a doubling of Marathon’s operational hash rate, a key indicator of mining efficiency and power.

Notably, the acquisition grants Marathon ownership of 390 megawatts of operational capacity, presenting intriguing opportunities for expansion and optimization. At present, 82 megawatts (21%) lie vacant and primed for potential expansion initiatives, while 244 megawatts (63%) are leased out to tenants. Marathon already occupies the remaining 64 megawatts (16%) of capacity.

Following the finalization of the acquisition, Marathon anticipates a substantial 30% reduction in its cost per coin, underscoring the company’s commitment to maximizing efficiency and profitability. Plans are underway to onboard new miners to utilize the vacant 82 megawatts, further enhancing Marathon’s mining capabilities.

As tenants vacate the 244 megawatts, Marathon intends to leverage this space to optimize its operations and amplify its hash rate. The company has set its sights on integrating seven exahashes of miners, with the first tranche expected to be delivered and operational by January 2024.

As Marathon Digital Holdings takes bold steps into the Bitcoin mining realm, this transformative acquisition positions the company for exponential growth, enhanced operational capabilities, and a formidable presence within the ever-evolving cryptocurrency market.