Marathon Digital nasdaq Mara Stock Slides Post announcement of Bitcoin Mining Site Acquisition

Marathon Digital (NASDAQ: MARA) Stock Slides Post-Announcement of Bitcoin Mining Site Acquisition

Marathon Digital Holdings (NASDAQ: MARA) stock dropped over 6% following the announcement of the closing of its acquisition of two operational Bitcoin mining sites.

Marathon Digital Holdings (MARA) has closed its acquisition deal with Generate Capital, securing two operational Bitcoin mining sites with a combined operational capacity of 390 megawatts. The move marks a pivotal moment for Marathon as it transitions into a more sophisticated organization boasting a diversified portfolio of Bitcoin mining assets.

Marathon Digital Holdings (NASDAQ: MARA) now commands an expansive mining capacity of approximately 910 megawatts, with 45% of this capacity located on company-owned sites and the remaining 55% hosted by third-party entities.

As per Fred Thiel, the Chairman and CEO of Marathon, the company anticipates integrating these assets into its portfolio, leveraging cutting-edge technologies to improve efficiencies. In addition, there are plans to scale operations to 50 exahashes of capacity over the next 18-24 months.

Salman Khan, Marathon’s Chief Financial Officer, said,

“This transaction was made possible by Marathon’s ability to act opportunistically and decisively, as well as by the strong balance sheet we have built over the past year. We look forward to realizing the synergies from this transaction, including the anticipated reduction in our bitcoin production costs, as we begin incorporating these new assets into our operations.”

David Hirsch, Principal at Generate Capital, commented,

“This transaction demonstrates Generate’s strong operational capabilities, and we are excited for Marathon to take over stewardship of the Kearney and Granbury data centers, which are some of the most efficient data centers and largest controllable load resource assets in the North America. Marathon is well placed to fully realize the potential of these assets for their stakeholders.”