Marathon Digital Acquires Applied Digital’s Texas Bitcoin Mining Facility for $87.3 Million
Applied Digital, a leading digital asset mining company, has announced the sale of its 200-megawatt (MW) Bitcoin mining facility in Garden City, Texas to Marathon Digital Holdings for a total of $87.3 million. The deal is expected to be completed in the second quarter of 2024.
Modified Acquisition Agreement
- The acquisition agreement may include modifications that could increase the gross purchase price to $97.3 million.
Strategic Benefits for Applied Digital
- The acquisition provides Applied Digital with additional financial resources and strengthens its foundation for long-term expansion and operational superiority.
- Applied Digital will now be able to focus on constructing high-performance computing (HPC) data centers, which aligns with its strategic goals.
Marathon’s Plans for Bitcoin Halving Event
- In preparation for Bitcoin’s halving event, Marathon intends to purchase more mining sites.
Marathon’s Relationship with Applied Digital
- Before acquiring the Texas facility, Marathon was a hosting client at the site under a hosting agreement.
- Even after the acquisition, Marathon will continue to be a hosting client at Applied Digital’s North Dakota data center.
Applied Digital’s Collaboration with Together AI
- Applied Digital recently announced a collaboration with Together AI, where Together AI will use Applied Digital’s Nvidia H100 graphics processing units (GPUs) for its operations.
- This partnership allows Applied Digital to diversify its business by entering the generative AI industry.
Marathon Digital’s Bitcoin Mining Exploits
In late February, Marathon reported a self-mining hash rate of 28.7 exahashes per second (EH/s). With Bitcoin’s upcoming halving event, Marathon is strategically strengthening its financial resources to maintain its position in the mining industry. The company currently has over $1 billion in unrestricted cash and bitcoin combined, and projections indicate that its hash rate will reach 50 EH/s by the end of 2025.
Marathon has also been expanding its mining capacity through various acquisitions. In January, the company purchased two mining sites in Nebraska and Texas for approximately $179 million, adding 390 MW to its capacity. The acquisition of Applied Digital’s Texas Bitcoin mining facility further solidifies Marathon’s position as a major player in the digital asset mining industry.
Hot Take: Marathon Digital Strengthens Bitcoin Mining Presence with Texas Acquisition
The acquisition of Applied Digital’s Texas Bitcoin mining facility by Marathon Digital Holdings for $87.3 million marks a significant milestone for both companies. The deal provides Applied Digital with additional financial resources and allows them to focus on constructing HPC data centers. On the other hand, Marathon strengthens its position in the mining industry and prepares for Bitcoin’s halving event. With strategic acquisitions and a projected increase in hash rate, Marathon is well-positioned for future growth. This acquisition further solidifies Marathon’s role as a major player in the digital asset mining industry.
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