Hut 8 to Receive $13.5 Million from Marathon for Operational Control of Two Bitcoin Mining Sites

Marathon Digital Pays Hut 8 $13.5 Million Termination Fee for Bitcoin Mining Sites

Marathon Digital has reached an agreement with Hut 8 to pay a termination fee of $13.5 million in order to assume full operational control of its recently acquired bitcoin mining sites in Granbury, Texas and Kearney, Nebraska. By April 30, Marathon plans to replace Hut 8 as the operator of the sites, while Hut 8 will continue to provide managed services and conduct self-mining activities during the transition period.

Hut 8 President Acknowledges Transition

Hut 8 President Asher Genoot expressed pride in the work done at the Kearney and Granbury sites and anticipates an orderly transition of operations in the coming months. Further updates about Hut 8’s future plans will be provided as they become available.

Hut 8 Forgoes $1.2 Million-Per-Month Contract

Hut 8 inherited a service agreement following its merger with USBTC last year. The contract had over four years remaining and was valued at $1.2 million per month. However, Hut 8 and Marathon’s subsidiaries agreed to terminate the contract on January 30, transferring operational responsibilities to Marathon. This move is expected to reduce Marathon’s operating fees and improve its production cost for mining bitcoin at the sites.

Marathon Looks Forward to Full Control of Mining Sites

Marathon Chairman and CEO Fred Thiel expressed excitement about gaining more influence over the Texas and Nebraska sites and leveraging operational expertise to fully benefit from the recent acquisition.

Hot Take: Marathon Digital Assumes Full Operational Control of Bitcoin Mining Sites

Marathon Digital has agreed to pay a termination fee of $13.5 million to take full operational control of its recently acquired bitcoin mining sites in Granbury, Texas and Kearney, Nebraska. Hut 8 will continue to provide managed services and conduct self-mining activities during the transition period. This move allows Marathon to reduce operating fees and improve production costs. Marathon is excited about gaining more influence over the sites and leveraging its operational expertise to maximize the benefits of the acquisition.