Marathon Digital nasdaq Mara Stock Jumps 6 Find out Why

Marathon Digital (NASDAQ: MARA) Stock Jumps 6% – Find Out Why

Marathon Digital Holdings (NASDAQ: MARA) stock surged 6% on Friday after the company announced the acquisition of Applied Digital’s Bitcoin mining data center.

Marathon Digital (MARA) has signed a definitive purchase agreement to acquire the Bitcoin mining data center from Applied Digital (NASDAQ: APLD).

The deal involves the purchase of the Bitcoin mining data center in Garden City, Texas. The facility boasts a nameplate capacity of 200 megawatts. This groundbreaking agreement comes at a hefty price tag of $87.3 million in cash. The transaction is pending customary closing conditions and is expected to be closed in the second quarter of 2024.

According to Marathon Digital’s CEO, Fred Thiel, this strategic move follows the recent successful acquisition and management of data centers in Granbury, Texas, and Kearney, Nebraska. Thiel expressed enthusiasm, stating, 

“We are building on that momentum by now acquiring the Bitcoin mining data center in Garden City, Texas from Applied Digital.”

Thiel further elaborated on the benefits, citing, 

“This transaction increases our influence over our current operations, reduces our cost per coin by approximately 20% at the site, and provides us with an additional 100 megawatts of capacity in which to expand.”

Wes Cummins, CEO of Applied Digital, said,

“This strategic transaction represents a purposeful pivot, equipping the Company to allocate financial and operational resources toward strategic sites in North Dakota, as well as bolstering our Balance Sheet strength. With a focused emphasis on the building of our HPC data centers, we reinforce our groundwork for enduring growth and operational excellence.”

Marathon Digital (NASDAQ: MARA) Stock Reaction

MARA stock jumped 5.98% to close at $19.32 on Friday. The traders had exchanged hands with 57,781,859 (57.78 million) shares compared to the average daily trading volume of 89.57 million.