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Marathon Pays Record $879 Million for Bitcoin Mining Hardware

Bitcoin mining firm Marathon Digital Holdings revealed the final amount of $879 million that it intends to pay for new Bitmain bitcoin mining machines. 

The United States-based company is buying 78,000 units of Antminer S-19XP mining hardware from China’s Bitmain Technologies Ltd. The companies signed the deal during the week starting December 20th, however the details were only disclosed on Tuesday, December 28th. 

Bitmain will start delivering orders in June 2022. Each month, until the end of the year, it will supply Marathon Digital with 13,000 new Antminers.

The size of the order, and the amount Marathon Holding is set to pay, is one of the biggest transactions in the history of cryptocurrency mining. 

According to Marathon’s CEO, Fred Thiel, the deal will help Marathon Digital Holdings to become one of the biggest bitcoin mining companies in the world.

Should the order be successfully completed, the Nasdaq-listed company will have 199,000 units for bitcoin mining, and will increase the BTC mining hashrate to 23.3 EH per second. 

After China’s crypto crackdown back in Q2 of 2021, the majority of the world’s bitcoin mining power migrated to the United States. The local bitcoin mining industry now dominates the bitcoin mining market, producing over 35% of the world’s bitcoin mining hashrate.

On the Flipside

  • The Bitcoin mining process requires massive amounts of energy and is highly detrimental to the environment. Marathon Digital Holdings is working with power providers in the U.S. which generate renewable energy. By the end of 2022, the company plans to be 100% carbon neutral.

Why You Should Care

The deal works in favor of putting a higher concentration of the overall Bitcoin mining power into several hands. The power balance has shifted from China to the United States, but the tendency of there being a market monopoly remains unaffected.

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    This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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    Author

    Simona is a fintech journalist and content editor at DailyCoin Academy, which focuses on educating new crypto investors. She entered the crypto space in early 2018, got burned, but discovered a passion for trading, and now it’s her hobby. Simona covers crypto and blockchain-related topics and takes a deeper look at what lies behind the latest industry trends.