Marathon Digital creeps towards goal with new investments

Last Updated: 21 July 2022

A new agreement with Applied Blockchain should help Marathon Digital reach a hash rate of 23.3 EH/s by the end of 2023. Marathon Digital’s data centre — Applied Blockchain — has secured a total of 254 megawatts of new energy and could even increase that to 324 megawatts if it collaborates with other suppliers.

Step in the right direction

Marathon Digital signed the agreement with Applied Digital last week, and the latter has now secured a large number of megawatts for Marathon’s new equipment. Applied Blockchain has promised to send at least 90 megawatts to the Texas facility and at least 110 megawatts to Marathon Digital’s miners in North Dakota.

The data centre has also given Marathon the option to add an additional 70 megawatts in the future. Marathon Digital has a total of 66,000 miners in the area being discussed, which are currently good for about 9.2 EH/s.

Marathon aims to produce a total of 23.3 EH/s of hash rate for their bitcoin mining operations. Applied Blockchain’s latest deal at least provides them with 254 megawatts of new hosting power, taking them a step in the right direction towards achieving that goal.

If the deal is fulfilled, Marathon is expected to reach their hash rate target of 23.3 EH/s by the end of 2023. To add to that, it has plans to expand considerably in Texas.

14,000 new miners

In addition to the agreement with Applied Blockchain, Marathon Digital is planning to set up 14,000 new miners at its facility in Texas. It is an initiative that could put Marathon Digital’s expansion drive into a new gear. “With these new agreements, we are confident that we have sufficient capacity to produce 23.3 EH/s with our fleet by the end of next year,” said CEO Fred Thiel. The first miners of the expansions should already start working in August.

The rest of the new miners should start hashing for Marathon Digital towards the fourth quarter of 2022 and early 2023. Shares of the US bitcoin miner reacted positively to the news. Before the announcement, the shares were at 8 dollars, but now they are at 9.70, and thus more than 20 percent higher.

Interestingly, Marathon Digital is one of the few bitcoin miners that has not had to sell a single bitcoin from their reserves to get through the winter. At the time of writing, Marathon holds a total of 10,055 bitcoin. At current exchange rates, this is worth approximately $230 million.

Author

  • Ivan came across the topic of cryptocurrencies in early 2016 and, as an author and enthusiast, has been intensively involved with the topics of cryptocurrencies, blockchain and STOs ever since.

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