Marathon Digital Holdings revealed on March 15 its finalized agreement with Applied Digital to acquire a 200-megawatt (MW) Bitcoin mining facility situated in Texas for a sum of $87.3 million. The deal, transacted in cash from Marathon's existing reserves, awaits completion following adjustments to the purchase price. Upon finalization, the acquisition is poised to bolster Marathon's overall Bitcoin mining capacity to roughly 1.1 gigawatts, representing a significant stride in the company's expansion efforts.
Fred Thiel, Chairman and CEO of Marathon, highlighted the strategic significance of the transaction, emphasizing the potential leverage it offers over current operations while reducing the cost per coin onsite by an estimated 20%. Additionally, the acquisition grants Marathon an extra 100 MW of capacity for future expansion endeavors. Thiel articulated the company's forward-looking vision, stating that upon the completion of the transaction and anticipated site expansion, Marathon's Bitcoin mining portfolio will encompass approximately 1.1 gigawatts of capacity, with a notable 54% residing at directly owned and operated sites across 11 locations spanning three continents.
Marathon Digital witnessed a notable upsurge in revenue during 2023, achieving its most successful fiscal year to date with revenue reaching $387.5 million. This marked a substantial 229% increase from the previous year, with an impressive 452% surge in revenue recorded in Q4 alone. The uptick in revenue was fueled by Bitcoin's surge in late 2023 and a remarkable 147% year-over-year boost in Marathon Digital's Bitcoin production.
In a bid to streamline and expedite transaction processing on the Bitcoin blockchain, Marathon recently introduced a new direct Bitcoin transaction submission service dubbed "Slipstream." Designed to facilitate swift and efficient processing of large or unconventional transactions, Slipstream aims to enhance the transactional capabilities of Marathon Digital.
Looking ahead, mining firms such as Marathon Digital are bracing for the impending Bitcoin halving event, anticipated to occur around mid-April. This event, triggered by a predetermined number of blocks being mined on the Bitcoin blockchain, is poised to halve the block reward from 6.25 BTC to 3.125 BTC per block, potentially exerting a significant impact on the operations of large-scale mining entities.
