Marathon Digital Purchased Additional 78,000 Bitcoin Mining Machines for $900M

Bitcoin

One of the largest cryptocurrency mining companies – Marathon Digital Holdings – bought 78,000 Antminer S-19 XP miners from Chinese maker – Bitmain. To acquire the equipment, the company spent nearly $ 900 million.

Marathon Deepens Its Mining Efforts

According to the filing with the Securities and Exchange Commission, Marathon Digital Holdings (NASDAQ symbol: MARA) will receive the machinery in the second half of 2022. Bitmain will deliver 13,000 units per month in July, August, September, October, November, and December.

The equipment is the latest generation of Antminer S-19 XP miners. Marathon paid $ 879.06 million for the deal.

The news was announced nearly a week ago, but the acquisition price became evident today. It is worth noting that upon disclosing the information back then, MARA’s shares jumped by 10% in a single trading day.

The company expects its operations to reach nearly 200,000 bitcoin miners producing around 23.3 EH / s by the start of 2023. This is expected to be a 600% increase from current production levels.

Last month, Marathon Digital revealed its plans to raise $500 million through the issuance of senior convertible notes. The firm explained it wanted to use the proceeds to buy bitcoin and BTC mining machines.

Marathon Digital is not the first publicly traded company to go into debt to buy amounts of the main cryptocurrency. The NASDAQ-listed giant – MicroStrategy – has done this a few times, ultimately raising over $ 1 billion to buy BTC.

Stronghold Digital Also Purchased Mining Machinery

Earlier this month, the Pennsylvania-based company – Stronghold Digital Mining – bought 9,080 Bitmain and MicroBT mining rigs. The purchase will allow it to add roughly 826 petahashes per second (PH/s) to its power generation capacity.

Stronghold Digital will receive the mining rigs by the first quarter of 2022, as they will all be installed at its wholly-owned power generation facilities. The company also admitted that it was set to acquire an additional 54,000 mining rigs soon with a total hash rate of 5.2 exahashes per second.

The entity announced another deal focused on its long-term strategy. It got into an equipment financing agreement with New York Digital Investment Group (NYDIG) for approximately $54 million. The deal is collateralized by purchasing 12,000 S19j Pro Antminers from Bitmain, and Stronghold has already received an $18.6 million advance, the latter confirmed.

admin

Read Previous

Satoshi-Era Bitcoin Wallet Activated After 10.5 Years

Read Next

Bitcoin Predicted to Soar to $200,000 in 2022 by Brock Pierce

Leave a Reply

Your email address will not be published. Required fields are marked *

Right Menu Icon