Marathon Digital Holdings Inc. (NASDAQ: MARA) stock gains by 2.37% in the current market trading. Marathon is a digital asset technology business that mines cryptocurrencies and focuses on the blockchain ecosystem and digital asset production.
Marathon Digital Holdings and Compute North have signed a binding letter of intent to host nearly 73,000 of Marathon’s previously acquired Bitcoin miners in a new 300-megawatt data center in Texas.
Marathon will provide Compute North with an 18-month bridge loan of up to $67 million in tranches, depending on the agreement’s terms and the fulfillment of agreed conditions. The contract’s initial duration is three years, with annual raises set at 3% a year after that. Between October 2021 and March 2022, implementation will take place in phases.
MARA’s hashrate will be about 10.37 EH/s until all of its miners are installed, and MARA’s total mining expense for hosting utilities, power, data center management, and hosting-related capital spending across all of its facilities will be $0.453 per kWh, making Marathon’s activities roughly 70% carbon neutral.
Fred Thiel, Marathon’s CEO commented:
MARA has a long-standing partnership with Compute North, and by extending their collaboration with them through this new deal, they have now provided cost-effective hosting for all 103,120 of their previously purchased Bitcoin miners. This agreement puts MARA on the fast track to becoming one of North America’s biggest, most successful, and environmentally conscious Bitcoin miners. Furthermore, the framework of this deal is particularly favorable because it helps MARA to build the requisite facilities for their miners without incurring capital costs, and it gives them the freedom to consider alternate sites if they need to, even while reducing the possibility of price increases.