Marathon Digital Set to Acquire $87.3M Bitcoin Mining Facility

• The purchase will increase Marathon’s overall Bitcoin mining capacity to around 1.1 gigawatts.
• Marathon has agreed to pay the acquisition price in cash from its assets.

Marathon Digital Holdings recently made an announcement about a formal deal to acquire a 200 MW Bitcoin mining facility in Texas from Applied Digital for $87.3 million. After all changes to the price have been negotiated, the deal will be finalized since Marathon has agreed to pay the acquisition price in cash from its assets.

The purchase will increase Marathon Digital’s overall Bitcoin mining capacity to around 1.1 gigawatts, according to the company’s blog post. With $387.5 million in sales, up 229% year-over-year and 452% in the fourth quarter, Marathon Digital enjoyed its best-ever fiscal year in 2023.

Impending Halving

Marathon Digital’s 147% year-over-year growth in Bitcoin output and the Bitcoin surge in late 2023 were the factors that contributed to the increase in revenue. Marathon debuted their new direct Bitcoin transaction submission service at the end of February. With the new service “Slipstream” in place, the Bitcoin blockchain can now handle larger and/or non-standard transactions more quickly.

Moreover, mining firms like Marathon Digital will next face the challenge of preparing for the next Bitcoin halving. Also, this might have a disproportionate impact on large-scale mining operations; it will happen after a certain number of blocks have been mined on the Bitcoin blockchain; at present, it is expected to happen in mid-April. The mining incentives for each block will drop from 6.25 BTC to 3.125 BTC, a 50% decrease.

With Bitcoin prices soaring and creating new all-time highs, several mining firms are eyeing to maximize their output and gain maximum before the halving event.

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