Bitcoin miner Marathon Digital (MARA) is taking bold steps to optimize its operations ahead of the planned halving of the Bitcoin reward in April 2024. With plenty of cash at its disposal, Marathon Digital has announced the acquisition of two sites from subsidiaries of lending company Generate Capital, for an impressive $178.6 million in cash. The move is aimed at boosting its mining capacity and reducing production costs by almost 30%.
Reducing the reward for Bitcoin mining
Marathon Digital has announced the acquisition of two Bitcoin mining sites for $178.6 million. The sites, owned by subsidiaries of Generate Capital, will add 390 megawatts of mining capacity to the company. The acquisition will enable Marathon Digital to reduce its mining costs by 30% per coin mined. The sites are located in Texas and Nebraska, and offer immediate expansion opportunities for the company.
The 50% reduction in the reward for Bitcoin mining is scheduled for April 2024. This reduction in the reward for Bitcoin mining is known as “halving”. It reduces inflationary pressure on Bitcoin by reducing the amount of new Bitcoins entering the market. Bitcoin miners must therefore reduce their mining costs to maintain profitability. The acquisition of new Bitcoin mining sites enables Marathon Digital to reduce its mining costs and maintain profitability.
Future prospects for Marathon Digital
The acquisition of new Bitcoin mining sites enables Marathon Digital to reduce its mining costs and maintain profitability. Marathon Digital also stated that it plans to install its own mining equipment on the newly acquired sites.
Marathon Digital has acquired two Bitcoin mining sites for $178.6 million. This acquisition will enable the company to reduce its mining costs by 30% per coin mined. It also aims to maintain profitability ahead of the 50% reduction in the reward for Bitcoin mining scheduled for April 2024. The acquisition of new Bitcoin mining sites enables Marathon Digital to double its operational hash rate. This will take place over the next 18 to 24 months, reaching around 50 exahashes.
