Marathon Digital Holdings (MDH) is building out its cryptocurrency mining resources as it prepares to withstand planned changes to Bitcoin blockchain programming that could reduce its profits.
In an announcement Thursday, the company announced it would purchase a 200-megawatt data center in Texas for $87.3 million. This will also significantly change the way Marathon conducts mining.
“Upon completion of this acquisition and the anticipated site expansion in 2024, Marathon will increase the number of megawatts in its mining portfolio to 1.1 gigawatts, 54% of which will reside on sites directly owned and operated by the company. .” Marathon said in a press release:
Currently, only 3% of mining takes place at facilities owned and operated by Marathon.
The added capacity increase will help Marathon mine more Bitcoin and help offset potential profit losses from the sharp halving of Bitcoin rewards for miners in April.
MDH’s stock is trading at $19.64, up nearly 8% as of this writing.
Marathon is one of the few large-scale public mining companies that survived the most recent “crypto winter” and continues to operate, with the price of Bitcoin hitting all-time highs in 2024. Competitors such as Chelsea Mining and Compute North have filed for bankruptcy in the past. Over the years, MDH has paved the way for a lead over its older competitors in a once-crowded field.
According to The Block’s BTC price page, Bitcoin was trading at $68,798 at 3:53 PM EDT on Friday, down 1.5% from the previous day.
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
About the author
Elizabeth Napolitano is a data reporter covering business and technology news with a focus on cryptocurrency. Before she joined The Block, Elizabeth reported on BigTech, AI, cryptocurrency, and video games for CBS Moneywatch. As a CoinDesk reporter, she covered DeFi, NFTs, and US courts. She received a master’s degree in journalism from CUNY. X: Follow her at @LizKNapolitano.