🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Marathon Digital Holdings to remove Hut8 as the operator of two Bitcoin mining sites

Published 2024/02/01, 20:48
© Reuters.
HUT
-

Marathon Digital Holdings, Inc. (NASDAQ:MARA) has entered into an agreement with affiliates of Hut8 Mining Corp. to remove Hut8 (HUT) 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.”

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.