- Marathon Digital Holdings is acquiring two new Bitcoin mining sites to double its capacity and reduce costs ahead of the 2024 halving which will reduce block rewards.
- The sites in Texas and Nebraska provide Marathon with 390 megawatts of power capacity, most of which is immediately usable, giving ample room for further expansion.
- Owning the sites outright will reduce Marathon’s cost to mine each Bitcoin by 30% as it takes over expiring contracts from existing clients and installs more of its own miners.
The upcoming Bitcoin halving in 2024 is prompting mining companies like Marathon Digital Holdings to expand their operations. By acquiring two new mining sites, Marathon aims to double its capacity and reduce costs ahead of reduced block rewards.
Marathon Buys Two Operational Mining Sites
Marathon Digital will pay $179 million to fully acquire two functioning Bitcoin mining sites from Generate Capital. This will provide Marathon with 390 megawatts of additional power capacity, 82% of which is ready for immediate use.
The sites in Texas and Nebraska offer ample room for further expansion. Marathon plans to double its hash rate to 50 exahashes over the next two years as existing clients depart and it installs more of its own miners.
Deal Cuts Marathon’s Mining Costs by 30%
Owning these sites outright will reduce Marathon’s cost to mine each Bitcoin by 30%, according to the company. The sites currently host other clients, but Marathon will take over their capacity as their contracts expire.
Marathon Continues Preparing for 2024
Earlier this year, Marathon ordered a new batch of 7 exahashes of mining hardware to be delivered in early 2024. The company has been building up its Bitcoin treasury and reducing debt to prepare its finances before the halving reduces block rewards.
The upcoming halving and need to stay profitable is prompting Marathon and other miners to expand. By acquiring more capacity now, Marathon aims to smooth the transition and remain competitive after 2024.
