Crypto Miner Marathon Secures 200MW Energy Capacity from Applied Blockchain

Bitcoin miner Marathon Digital Holdings has announced the completion of a deal with Ethereum and altcoin mining company Applied Blockchain to secure at least 200 megawatts of energy capacity.

The deal with the hosting provider comes with an option to extend the energy capacity to 270 megawatts. The announcement added that the company would release about 66,000 previously purchased miners, which represents a hash rate of 9.2 exahash per second (EH/s) across two hosting facilities.

The deal adds additional 42 megawatts of hosting capacity that the bitcoin miner has already secured with Compute North on July 5, as well as 12 megawatts from a number of other providers, The Block reported.

Fred Thiel, Marathon’s chairman and CEO, said, "we believe we have now secured enough hosting capacity to support our target of achieving approximately 23.3 exahashes per second of computing power for Bitcoin mining in 2023."

Although the deal has been settled, Applied Blockchain's facilities are still under construction. The Block reported that miner installation will begin in the fourth quarter of 2022 and finish around mid-year 2023.

According to Applied Blockchain chairman and CEO Wes Cummins, "demand for our hosting services remains robust despite the volatility in the cryptocurrency markets, giving us continued confidence in the growth potential of our business for fiscal 2023 and beyond."

Applied Blockchain currently hosts two facilities. The one in Texas will supply Marathon with 90 megawatts, while the one in North Dakota will provide 110 megawatts.

According to The Block, In June, bitcoin mining production from Marathon fell by about 47.8% after a storm broke down most of their mining fleet offline. 

However, the bitcoin mining company's stock was up by 21.39% on Monday, prior to their announcement, The Block added.