By Staff Reporter
Nasdaq-listed Marathon, one of the largest enterprise Bitcoin self-mining companies in North America, has entered into a binding letter of intent with Compute North to host approximately 73,000 of Marathon’s previously purchased Bitcoin miners as part of a new 300-megawatt data center located in Texas.
Under the terms of the agreement and based on specified requirements being met, Marathon will provide Compute North with an 18-month bridge loan of up to $67 million, in tranches, to construct the facility.
The initial term of the contract is three years with increases capped at three percent per year thereafter. Implementation is planned to take place in stages between October 2021 and March 2022.
Once all of Marathon’s miners are installed, the company’s hashrate will be approximately 10.37 EH/s, the company’s average mining cost for hosting services, electricity, data center management, and hosting related capital expenditure across all its facilities will be $0.0453 per kWh, and Marathon’s operations will be approximately 70% carbon neutral.
“Compute North is a long-term partner of ours, and by expanding our working relationship with them through this new agreement, we have now secured economical hosting arrangements for all 103,120 of our previously purchased Bitcoin miners,” said Fred Thiel, Marathon’s CEO. “This agreement sets us on a clear path to becoming one of the largest, most efficient, and most environmentally conscious Bitcoin miners in North America. Additionally, the structure of this agreement is highly advantageous as it allows us to have the necessary infrastructure for our miners built without the capital expenditure, and it provides us with the flexibility to explore alternative locations, should we require them, while mitigating the risk of price increases.
“Once all our miners are deployed by the end of the first quarter of 2022, our hashrate will be 10.37 EH/s, and our operations will be 70% carbon neutral, with our long-term objective being to obtain a 100% carbon neutral footprint.”