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The MARA stock is back in the headlines after announcing their plan to acquire a bitcoin mining facility with a capacity of 200 MW.
On March 15, Marathon Digital Holdings stated that it had come to a definite agreement with Applied Digital to acquire a Bitcoin mining facility in Texas with a capacity of 200 megawatts for $87.3 Million.
The Bitcoin Mining Facility
Mid-December of last year, the company released a press statement announcing a definitive agreement it had entered into. The agreement involved purchasing two operational Bitcoin mining sites worth $179 Million.
Fred Thiel, Marathon’s CEO and chairman commented on the deal: Over the past year, Marathon has been vertically integrating as we transition into a more sophisticated and mature organization with a diversified portfolio of Bitcoin mining technologies and assets. The acquisition of these sites is the next step in that evolution.
The terms of the agreement state that Marathon will pay the purchase price in cash from its holdings, and the transaction will be finalized once all price adjustments are settled. This acquisition will increase Marathon’s total Bitcoin mining capacity to about 1.1 gigawatts, which is almost equivalent to the power required to operate the “Flux Capacitor” from the Back to the Future movies.
In addition to this, Fred also mentioned that this transaction will help increase their control over their current operations. Moreover, they will reduce their cost per coin by around 20% at the site. In addition, it will also provide them with an additional 100 megawatts of capacity for expansion. On the other hand, experts claim that the MARA stock is expected to show significant growth following this news.
After the completion of this transaction and the expected expansion of the site this year, their Bitcoin mining portfolio will have a capacity of about 1.1 gigawatts. In addition to this, 54% of the capacity will be on sites that they directly own and operate. All of which are diversified across eleven sites on three continents.
The MARA Stock Performance
MARA stock has experienced a surge of more than 97% in just six months, and there’s a lesser-known reason behind its rapid rise. In November, the Federal Reserve decided to leave the policy rate unchanged. This on the other hand inspired confidence in the capital markets including the MARA stock
This optimism spread throughout the market, with major indices showing significant gains by the end of December. The Nasdaq Composite rose by more than 15%, while the S&P 500 hit all-time highs with an increase of up to 13%, which contributed to the rise of MARA stock.
Summary
Marathon Digital Holdings announced in December that it had entered into an agreement to purchase two Bitcoin mining sites worth $179 Million. Recently, the company acquired a Bitcoin mining facility in Texas. This acquisition will help increase their control over their current operations The company expects to expand its capacity by an additional 100 megawatts. As a result, MARA stock has surged more than 97% in just six months.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos, or other related indexes comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
