Marathon Digital Plans Further Increase in Bitcoin Mining Capacity

Marathon Digital, a major Bitcoin mining firm, has announced its intention to double its mining operations by the end of 2024, setting a target hash rate of 50 exahashes per second (EH/s). CEO Fred Thiel stated that recent acquisitions and expanded capacity enable this ambitious expansion without the need for additional capital.

Marathon began 2024 with a hash rate of about 24.7 EH/s, but recent acquisitions have significantly increased its capacity. The firm acquired a 200-megawatt Bitcoin mining center from Digital Applied for $87.3 million in March and two additional mining sites totaling 390 megawatts from Generate Capital for $179 million last December.

Thiel emphasized that the new target is fully funded, eliminating the need for additional capital. Despite a slight decline in Marathon’s stock price on April 25, it rallied by 4.5% in after-hours trading following the announcement.

The fourth Bitcoin halving event, occurring at block 840,000 on April 20, halved block subsidies to 3.125 Bitcoin. However, miners benefited from a record-setting transaction fee averaging $128 on halving day. Transaction fees, initially driven by memecoin and nonfungible token enthusiasts, have since declined to $13, according to YChart.

Marathon’s upward trajectory mirrors industry trends post-halving, with its stock rising over 15%. Thiel’s confidence stems from deploying cutting-edge equipment and proprietary technology, targeting an efficiency of 21 joules per terahash as operations scale up.

Marathon Digital’s strategic moves underscore its commitment to advancing Bitcoin mining capabilities amid evolving market dynamics.