On February 2, according to a press release, Marathon Digital is set to acquire two of Hut 8’s Bitcoin mining facilities for a total of $13.5 million.
Marathon Digital Buys Out Site Management Rights
Top Bitcoin mining firm Hut 8 has announced its decision to divest its Bitcoin mining sites located in Kearney, Nebraska, and Granbury, Texas. This move comes as part of an agreement with Marathon Digital, in which Marathon Digital paid a termination fee of $13.56 million to obtain property management rights over these two sites.
Hut 8 will continue to manage these sites until April 30, 2024, at which point Marathon Digital will officially assume control. Marathon Digital is expected to pay the termination fee within 30 days of the transition.
Hut 8’s President, Asher Genoot, anticipates an orderly transition of operations over the coming months and hinted at sharing new initiatives with the cryptocurrency community in due course.
Marathon Digital, known for its asset-light Bitcoin mining infrastructure that validates transactions on the network, is planning to shift towards a more hands-on mining approach. This strategic shift was recently exemplified when Marathon Digital acquired two additional Bitcoin mining sites from Generate Capital on December 19, 2023. The acquisition cost Marathon Digital $178.6 million, equivalent to $458,000 per megawatt, to be paid in cash from the company’s balance sheet.
According to Marathon Digital’s press release, these newly acquired mining sites will contribute 390 megawatts in capacity to the company’s mining operations.
Marathon’s Mining Capacity Now At 910 Megawatts
Marathon Digital’s recent acquisition of Bitcoin mining sites from Generate Capital has already proven to be a lucrative investment for the company. Prior to this acquisition, Marathon Digital had a mining portfolio with a capacity of 584 megawatts, with only 3% of that capacity being operated in sites owned by the company. The remaining 97% was hosted by third parties.
However, with the addition of Generate Capital’s mining sites, Marathon Digital’s mining capacity has surged to 910 megawatts. CEO and Chairman Fred Thiel shared that 45% of this increased capacity is now operational in mining sites directly owned by Marathon Digital, while the remaining 55% is managed by third-party service providers.
Thiel also mentioned that the company is actively working on integrating its entire mining portfolio over the next 18 to 24 months, with the goal of reaching a capacity of 5 Exahashes (Eh/s).