On March 15, Applied Digital disclosed the completion of the sale of its 200-megawatt (MW) Bitcoin mining facility to Marathon Digital Holdings for $87.3 million. The Nasdaq-listed mining company revealed that the mining plant, situated in Garden City, Texas, is part of the agreement, which is anticipated to be finalized by the second quarter of 2024.
Applied Digital reveals a deal worth $87.3 million.
Potential adjustments to the acquisition agreement could lead to Marathon Digital Holdings paying a total purchase price of $97.3 million.
Applied Digital CEO Wes Cummins emphasized that this acquisition would enhance the company’s financial resources and fortify its position in the market. He highlighted that this transaction lays a solid foundation for long-term growth and operational excellence, enabling Applied Digital to focus on the development of HPC data centers, marking a strategic shift in its direction.
According to Bloomberg, Marathon aims to acquire additional mining sites in anticipation of Bitcoin’s halving event.
In 2023, the facility was constructed. Prior to this acquisition, Marathon had been a hosting client and had utilized the site for hosting agreements. Even following the acquisition of the Texas facility, Marathon will continue to be a hosting client at Applied Digital’s North Dakota data center.
Applied Digital reaffirmed its commitment to enhancing and expanding its high-performance computing (HPC) capabilities.
Additionally, the company announced a recent partnership with Together AI. This collaboration entails Together AI utilizing Applied Digital’s Nvidia H100 graphics processing units (GPUs) for its operations.
Amidst a trend of diversification within the Bitcoin mining industry into generative AI technologies, the Nasdaq-listed mining company is following suit, gearing up to explore generative AI technologies alongside its primary operations.
Marathon Digital’s Bitcoin mining endeavors
In late February, Marathon reported an impressive self-mining hash rate of 28.7 exahashes per second (EH/s). This comes at a crucial juncture in the Bitcoin mining landscape, as the next halving event is scheduled for April 20, leading to a reduction in block rewards from 6.25 BTC to 3.125 BTC.
To fortify its position ahead of this significant event, Marathon has taken strategic steps to enhance its financial resources. As of January 31, Marathon boasted a substantial reserve of over $1 billion in unrestricted cash and bitcoin combined. Based on financial projections, this robust financial footing is expected to drive the company’s hash rate to an estimated 50 EH/s by the conclusion of 2025.
Furthermore, Marathon has embarked on a series of substantial initiatives aimed at expanding its mining capacity. In January, the company executed the acquisition of two mining sites located in Nebraska and Texas, representing a substantial investment totaling approximately $179 million, with a combined capacity of 390 megawatts (MW).
The recent acquisition of Applied Digital’s Texas Bitcoin mining facility marks yet another significant milestone for Marathon, solidifying its position as a key player within the digital asset mining industry. This strategic move underscores Marathon’s commitment to growth and innovation, positioning the company for sustained success in the dynamic and rapidly evolving cryptocurrency market.
