Marathon Digital Holdings To Assume Full Operational Control of Its Recently Acquired Bitcoin Mining Sites
February 01 2024 - 1:41PM
Marathon Digital Holdings, Inc.
(NASDAQ:MARA) ("Marathon"
or "Company"), a leader in supporting and securing the
Bitcoin ecosystem, has entered into an agreement with affiliates of
Hut8 Mining Corp. (such affiliates, “Hut8”) to remove Hut8 as the
operator of two Bitcoin mining sites recently acquired by Marathon
in Granbury, Texas and Kearney, Nebraska. Marathon intends to
replace Hut8 as the operator of these sites by April 30, 2024.
On January 16, 2024, Marathon closed its
previously announced acquisition of two Bitcoin mining sites,
totaling 390 megawatts of operational capacity. While Marathon
assumed ownership of both sites, Hut8 continued to function as the
operator. On January 30, 2024, subsidiaries of Marathon and Hut8
entered into an agreement to terminate Hut8 as the operator of
these sites and transition the operational responsibilities to
Marathon.
By removing Hut8 as the third-party operator and
assuming direct operational control of both sites, Marathon expects
to reduce its operating fees, thereby improving its cost to produce
bitcoin, to more effectively participate in energy hedging and
other energy management services, and to streamline the
implementation of its proprietary technology to improve operational
efficiency. The transition is expected to be completed by April 30,
2024, at which point, Marathon will be both the owner and operator
of 390 megawatts of capacity in Texas and Nebraska.
“By operating the sites in Granbury and Kearney
ourselves, we will be able to fully recognize the operational and
economic benefits of owning these assets,” said Fred Thiel,
Marathon’s chairman and CEO. “The consistent performance of our
site in Abu Dhabi along with the immense improvements our team made
to King Mountain’s uptime last year, clearly demonstrate that
Marathon has some of the best operators in the industry. We look
forward to gaining more influence over our new sites in Texas and
Nebraska and leveraging our operational expertise to realize the
full benefits of our recent acquisition.”
Investor Notice Investing in
our securities involves a high degree of risk. Before making an
investment decision, you should carefully consider the risks,
uncertainties and forward-looking statements described under "Risk
Factors" in Item 1A of our most recent Annual Report on Form 10-K
for the fiscal year ended December 31, 2022, filed with the SEC on
March 16, 2023. If any of these risks were to occur, our business,
financial condition or results of operations would likely suffer.
In that event, the value of our securities could decline, and you
could lose part or all of your investment. The risks and
uncertainties we describe are not the only ones facing us.
Additional risks not presently known to us or that we currently
deem immaterial may also impair our business operations. In
addition, our past financial performance may not be a reliable
indicator of future performance, and historical trends should not
be used to anticipate results in the future. Future changes in the
network-wide mining difficulty rate or Bitcoin hash rate may also
materially affect the future performance of Marathon's production
of bitcoin. Additionally, all discussions of financial metrics
assume mining difficulty rates as of February 2024. See
"Forward-Looking Statements" below.
Forward-Looking Statements
Statements made in this press release include forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934. Forward-looking statements can be identified by the use of
words such as “may,” “will,” “plan,” “should,” “expect,”
“anticipate,” “estimate,” “continue,” or comparable terminology.
Such forward-looking statements are inherently subject to certain
risks, trends and uncertainties, many of which the Company cannot
predict with accuracy and some of which the Company might not even
anticipate and involve factors that may cause actual results to
differ materially from those projected or suggested. Readers are
cautioned not to place undue reliance on these forward-looking
statements and are advised to consider the factors listed above
together with the additional factors under the heading “Risk
Factors” in the Company's Annual Reports on Form 10-K, as may be
supplemented or amended by the Company's Quarterly Reports on Form
10-Q. The Company assumes no obligation to update or supplement
forward-looking statements that become untrue because of subsequent
events, new information or otherwise.
About Marathon Digital Holdings
Marathon is a digital asset technology company that focuses on
supporting and securing the Bitcoin ecosystem. The Company is
currently in the process of becoming one of the largest and most
sustainably powered Bitcoin mining operations in North America.
For more information, visit www.mara.com, or
follow us on:
Twitter: @MarathonDHLinkedIn:
www.linkedin.com/company/marathon-digital-holdingsFacebook:
www.facebook.com/MarathonDigitalHoldings Instagram:
@marathondigitalholdings
Marathon Digital
Holdings Company Contact:
Telephone: 800-804-1690Email: ir@mara.com
Marathon Digital Holdings Media
Contact:Email: marathon@wachsman.com
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