Marathon Digital Buys Another 78,000 Bitcoin Mining Machines For $900M

Aniket Jain 2021-12-31 09:12

Marathon Digital Holdings, one of the major Bitcoin Mining businesses, purchased 78,000 Antminer S-19 XP Miners from Bitmain, a Chinese manufacturer. The company spent approximately $900 million on the equipment.

Marathon’s mining efforts are being stepped up.

Marathon Digital Holdings (NASDAQ: MARA) will get the machinery in the second half of 2022, according to a filing with the Securities and Exchange Commission. In July, August, September, October, November, and December, Bitmain will ship 13,000 units every month.

The Antminer S-19 XP Miners are the latest generation of Antminer equipment. The deal was worth $879.06 million to Marathon.

Although the news was released about a week ago, the purchase price was just revealed today. It’s worth noting that MARA’s stock soared by ten percent when the news was released.

Marathon Digital announced plans to raise $500 million through the sale of senior convertible notes last month. The company stated that the funds would be used to purchase bitcoin and BTC mining equipment.

Marathon Digital isn’t the first publicly traded firm to raise debt to buy cryptocurrencies in large quantities. MicroStrategy, a NASDAQ-listed company, has done this before, raising more than $1 billion to purchase BTC.

Conclusion

Stronghold Digital Bitcoin Mining, based in Pennsylvania, purchased 9,080 Bitmain and MicroBT mining equipment earlier this month. It will be able to increase its power generation capacity by about 826 terahashes per second (PH/s) as a result of the purchase.

The mining machines will be delivered to Stronghold Digital in the first quarter of 2022.

Another agreement focusing on the company’s long-term strategy was announced. It entered into a $54 million equipment financing agreement with New York Digital Investment Group (NYDIG).

The transaction is secured by Bitmain acquiring 12,000 S19j Pro Antminers, while Stronghold has already received an $18.6 million advance, according to the latter.

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