Shares of Bitcoin (CRYPTO: BTC) miner Marathon Digital Holdings Inc (NASDAQ:MARA) are moving higher Tuesday. Here’s a look at what’s going on.
What To Know: Marathon Digital entered into a definitive agreement Tuesday to acquire two Bitcoin mining sites for $178.6 million. The two sites will provide 390 megawatts of capacity. Currently, Marathon’s Bitcoin mining portfolio consists of 584 megawatts of capacity.
“For the past year, Marathon has been vertically integrating as we transition into a more sophisticated and mature organization with a diversified portfolio of Bitcoin mining technologies and assets, and the acquisition of these sites is the next step in that evolution,” said Fred Thiel, chairman and CEO of Marathon Digital.
“By acquiring the sites in Granbury, Texas and Kearney, Nebraska from Generate, we have an opportunity to reduce our bitcoin production costs at these sites, to capitalize on energy hedging opportunities, and to expand our operational capacity.”
Marathon said it will fund the acquisition with cash from its balance sheet. The transaction is expected to close in the first quarter of 2024.
Marathon Digital shares are also moving higher alongside the price of Bitcoin. The world’s largest cryptocurrency crossed the $40,000 level at the beginning of December and has been stuck in a trading range since. After bouncing off the $41,000 level, Bitcoin is moving to the upside again Tuesday morning and was last up more than 4% over a 24-hour period.
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MARA Price Action: Marathon Digital shares were up 4.38% at $20.75 at the time of publication, according to Benzinga Pro.
Photo: Pete Linforth from Pixabay.
