According to official information, Marathon Digital, a Bitcoin mining company, has announced the acquisition of two new mining sites for a total of $178.6 million dollars.
These sites add capacity of 390 megawatts and will be purchased for cash using the company’s balance sheet company.
Marathon Digital Holdings Enters Definitive Agreement To Acquire Multiple Bitcoin Mining Sites for $179 Million
Learn more: https://t.co/FwhS4FujcA pic.twitter.com/b8p338Ku2N
— Marathon Digital Holdings (NASDAQ: MARA) (@MarathonDH) December 19, 2023
This acquisition is expected to reduce the cost per coin mined by approximately 30%.
These acquired mining sites have a percentage of their capacity already occupied by tenants engaged in Bitcoin mining, including 16% which is already being used by Marathon.
In addition, around 21% of capacity is currently vacant and available for expansion.
This acquisition is part of a broader strategy that responds to the proximity of the Bitcoin halving in April 2024
The next Bitcoin halving is scheduled for April 2024, and is currently estimated to occur when the block height reaches 840,000.
This halving of the rewards per mined block happens every 210,000 mined blocks.
However, the exact date may vary depending on the speed at which the blocks are mined.
The halving event is significant as it will decrease the rewards given to Bitcoin miners, which has historically impacted in the supply and demand of the cryptocurrency.
At the current time, the price of Bitcoin stands at around $42,627 per BTC.
In addition, the expansion of the acquired mining sites is expected to not only increase Marathon’s production capacity, but also allow for greater flexibility and adaptability in a market that continues experiencing dynamic changes in its structure and profitability.
Mining companies, including Marathon Digital, are looking for ways to optimize their operations and acquire smaller companies to increase their scale.
Marathon Digital had previously announced that it had $800 million to use for these types of acquisitions.
Following this announcement, Marathon shares on the Nasdaq rose about 7% to $21.29, which is in line with the performance of other mining companies in the sector.
Furthermore, in the last 24 hours, the price of Bitcoin has increased by around 1.66%.
