The subsidiaries of Generate Capital recently inked a definitive purchase agreement with Marathon Digital Holdings. Marathon Digital Holdings will be able to purchase two active Bitcoin mining locations according to the arrangement. Marathon would pay $187.6 million for sites with a combined capacity of 390 megawatts under the terms of the agreement.
Stated differently, Marathon is purchasing two of the top Bitcoin mining sites available on the market for 458,000 dollars per megawatt. With this purchase, Marathon is taking ownership of its first Bitcoin mining sites. The company has formally moved from managing asset operations to managing Bitcoin mining activities with this development.
Currently, Marathon has 584 megawatts of capacity, of which 3 percent are located on websites that are controlled by the corporation. For Marathon, third parties host the remaining 97% of the electricity.
After the deal complete, Marathon will add 910 megawatts of capacity to its BTC mining portfolio. After then, the corporation will hold 45% of the share, with the remaining 55% being hosted by third parties. Through this improvement, Marathon will be able to double its operating hash rate by improving its mining pipeline.
Marathon will be able to own 390 megawatts of operating capacity as a result of the transaction. Of this, 82 megawatts (or 21%) are empty right now and can be expanded. Of the total, 244 megawatts are occupied by tenants. Marathon already uses 64 megawatts (16%) of the remaining power.
Following the completion of the deal, Marathon will drop its cost per coin by thirty percent. The company then plans to assign new miners to the 82 megawatts of available capacity. Marathon plans to optimise its operations and increase its hash rate in the 244 megawatts after tenants vacate the area.
The first tranche of the company’s seven exahashes of miners is scheduled to be delivered and integrated in January 2024.