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- Marathon Digital Holdings last week publicized “the record purchase” of Bitmain ASIC rigs, according to a Tuesday filing with the SEC worth over $879 million, and raised the miner’s fleet using 78,000 machines.
- Marathon Digital Holdings is among the most significant bitcoin miners in the U.S. capital markets. The company under the symbol “MARA” trades on the Nasdaq and has outdone Bitcoin price performance this month. The miner profited 212.90% year-to-date; meanwhile, the BTC rose to 64.40% simultaneously.
- Between July and December, Marathon miners will receive 13,000 miners per month from Bitmain, as per the agreement’s terms, and within two days of execution, it will pay 35% of the deal’s amount.
Last week, Marathon Digital Holdings, a publicly-traded bitcoin mining company, announced a “record purchase” of Bitmain ASIC rigs, which cost over $879 million and elevated the miner’s fleet using 78,000 machines, according to a Tuesday filing with the SEC (Securities and Exchange Commission).
In another revelation, Marathon had revealed the complete information regarding its purchase last week when it announced it had entered into a partnership with Bitmain for acquiring a record number of bitcoin mining rigs.
However, at the moment, the company hasn’t disclosed the number of miners it had purchased or their price, but in an SEC filing, the details have been disclosed.
The deal will add around 78,000 new Antminer S19 XP miners costing $879,060,000 to Marathon’s fleet.
Last week, in a statement, Fred Thiel, CEO of Marathon Digital Holdings, said, “With this latest purchase of S19 XPs, we will be growing our Bitcoin mining operations to approximately 199,000 total miners and 23.3 EH/s by early 2023,”
According to the terms of the agreement, Between July and December 2022, Marathon will accept 13,000 miners per month from Bitmain and will deposit 35% of the deal’s amount within two days of contract execution.
The remaining 65% amount will be delivered separately with the arrival of each batch, at least six months before the batch’s shipment date. Marathon Digital Holdings will pay 35% of the batch price and the last 30% just one month before the shipment.
Marathon Digital Holdings, one of the largest bitcoin miners listed on U.S. capital markets, trades on the Nasdaq have surpassed the Bitcoin price and trades on the Nasdaq under the ticker symbol “MARA.” While BTC rose by 64.40%, the miners gained 212.90% year-to-date during the same time.
In the U.S., Bitcoin miners have experienced greater profitability this year since a large portion of Bitcoin’s hash rate went offline after China’s ban on mining activity during the summer.
After China, the country holding the largest share of hash rate forcefully shut down the operations, network mining difficulty dropped, raising the amount of BTC that miners can generate with the same hash rate capacity.
The mining industry has grown competitive again as the Chinese miners get back and migrate to foreign countries, lowering the productivity of American miners.
Furthermore, with an already tricky digital currency mining, Marathon especially suffered more due to maintenance work on its power plants in November. Down from 417.7 in October, the miner produced only 196 bitcoin last month.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
