Marathon Digital Holdings has strengthened its leadership position in the Bitcoin mining sector through the strategic acquisition of a 200-megawatt (MW) mining facility from Applied Digital. Announced on March 15th, Marathon is set to acquire the Garden City, Texas-based plant for $87.3 million, with the deal expected to close in Q2 2024.

The terms of the acquisition agreement allow for potential adjustments that could elevate the gross purchase price to $97.3 million. Applied Digital's CEO Wes Cummins lauded the transaction as a catalyst for bolstering the company's financial muscle and establishing a robust foundation for long-term growth and operational excellence. Simultaneously, this deal facilitates Applied Digital's purposeful pivot towards constructing cutting-edge high-performance computing (HPC) data centers.

As reported by Bloomberg, Marathon Digital is actively pursuing additional mining site acquisitions to fortify its position ahead of Bitcoin's impending halving event.

The acquired Texas facility, constructed in 2023, previously hosted Marathon as a client, underscoring the company's familiarity with its operations. Notably, Marathon will maintain its hosting agreement at Applied Digital's North Dakota data center, reinforcing the strategic synergies between the two companies.

Parallel to this acquisition, Applied Digital has reaffirmed its commitment to amplifying its HPC capabilities. The company recently unveiled a collaboration with Together AI, wherein Together AI will leverage Applied Digital's advanced Nvidia H100 graphics processing units (GPUs) for its operations – a testament to the mining industry's diversification into the flourishing generative AI domain.

Marathon Digital's Bitcoin mining prowess has been nothing short of remarkable. In late February, the company reported an impressive self-mining hash rate of 28.7 exahashes per second (EH/s). With Bitcoin's next halving scheduled for April 20th, expected to reduce the block reward from 6.25 BTC to 3.125 BTC, Marathon has strategically bolstered its financial war chest. As of January 31st, the company boasted over $1 billion in unrestricted cash and Bitcoin holdings, positioning it to achieve a projected hash rate of 50 EH/s by the end of 2025.

Moreover, Marathon has undertaken significant strides to expand its mining capacity. In January, the company acquired two mining sites in Nebraska and Texas for approximately $179 million (390 MW). This latest acquisition of Applied Digital's Texas Bitcoin mining facility further solidifies Marathon's stature as a preeminent force in the dynamic digital asset mining landscape.