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Marathon Digital has announced an increase in its 2024 hash rate target. It will go from 35-37 Exa Hashes per second (EH/s) to a formidable 50 EH/s.
This decision follows the company’s recent strategic acquisitions, which have expanded its capacity and positioned it for significant growth in the competitive mining landscape.
Making the Most of Increased Capacity through Purchases
Marathon Digital CEO Fred Thiel explained the altered goal regarding the company’s increased capacity due to recent acquisitions. In March, the company paid $87.3 million for a 200-megawatt Bitcoin mining facility purchased from Digital Applied. In December 2022, the company purchased two mining locations totaling 390 megawatts from Generate Capital for $179 million.
“Given the amount of capacity we have available following our recent acquisitions and the amount of hash rate […] we now believe it is possible for us to double the scale of Marathon’s mining operations in 2024,” said Thiel, expressing confidence in the company’s ability to meet its new hash rate goal.
He further stressed that the aim would be “fully funded,” meaning the company wouldn’t need to raise any more money.
Marathon’s Position in the Competitive Mining Landscape
Marathon Digital’s current hash rate is an impressive 24.7 EH/s, placing it among the top Bitcoin mining firms globally.
The competition is intense, as Core Scientific and Riot Platforms hold the second and third positions, respectively, with hash rates of 16.9 EH/s and 12.4 EH/s, according to the Hashrate Index.
If Marathon successfully achieves its ambitious 50 EH/s target, it would mark a significant milestone, representing more than a 100% increase in the firm’s hash rate since the start of 2024.
With this success, Marathon would become a significant force in the Bitcoin mining industry and show its resolve to use modern technology for increased productivity and financial gain.
Capitalizing on the Post-Halving Landscape
Marathon’s announcement comes in the wake of the fourth Bitcoin halving event on April 20 at block 840,000.
While the block subsidy halved to 3.125 Bitcoin (worth approximately $200,000 at current prices), miners benefited from a record-setting average transaction fee of $128 on the halving day, earning more than they usually did pre-halving.
This surge in demand was primarily driven by memecoin and non-fungible token (NFT) enthusiasts competing to inscribe and etch “rare satoshis” via the Runes protocol.
Although transaction fees have since fallen to $28.20 as of April 24, according to YCharts, the post-halving landscape presents challenges and opportunities for miners like Marathon Digital.
Conclusion
Marathon Digital’s decision to raise its 2024 hash rate objective to 50 EH/s is a daring declaration of purpose in the highly saturated Bitcoin mining market.
The company intends to use the post-halving market and its enhanced capacity via strategic acquisitions to further solidify its position as a dominant competitor.
Marathon’s dedication to investing in advanced technologies and optimizing operations prepares it to achieve ambitious goals.
Despite upcoming challenges, this also positions the company to drive innovation in the dynamic field of Bitcoin mining.
Amanda Shinoy is one of the few women in the space invested knee-deep in crypto. An advocate for increasing the presence of women in crypto, she is known for her accurate technical analysis and price prediction of cryptocurrencies. Readers are often waiting for her opinion about the next rally. She is a finance expert with an MBA in finance. Quitting a corporate job at a leading financial institution, she now engages herself full-time into financial education for the general public.
