Marathon To Triple Its Bitcoin Hashrate With Purchase of 70,000 Antminer S19s
Nasdaq-listed Bitcoin miner Marathon Patent Group ($MARA) is set to triple its Bitcoin hashrate after announcing the purchase of 70,000 Antminer S19 mining devices for $170 million.
According to the announcement, the US-based company expects the shipment to be executed later this year.
Once the 70,000 S19 Bitcoin miners are fully deployed, Marathon claim the company will command 103,000 ASIC miners with 10.36 (EH/s), making it the biggest Bitcoin miner in North America.
Marathon CEO, Merrick Okamoto, claims the purchase of 70,000 ASIC Bitcoin miners is one of the biggest deals in the Bitcoin mining industry.
‘This purchase is the largest order in dollar terms as well as the single largest order for S19 ASIC miners that Bitmain has ever received,’ said Okamoto. ‘We appreciate the hard work their team is putting in to fulfill this order as well as the 30,000 S-19 miners we have purchased since August 2020.’
Bitmain Sales Director of North, Central, and South America (NCSA) Irene Gao said,
‘We are excited that Bitmain has won this record-breaking purchase contract from Marathon. Marathon has quickly become our largest customer, and our partnership continues to mutually benefit both of our companies.’
Marathon Expanding Its Bitcoin Mining Operations
Marathon has been expanding its stake in the Bitcoin mining industry lately. Only last month that it acquired 10,000 Antminer S19j Pros, taking its Bitcoin hashrate up to 3.56 EH/s when installed.
These will be installed at Marathon’s Hardin, Montana data center, which it runs with Beowulf Energy. However, the new data center will be running at 100 MWs capacity once the mining devices are installed.
The Nasdaq-listed Bitcoin miner recently partnered with Beowulf Energy to attain cheap energy for its Bitcoin mining operations. The joint venture saw Marathon build a mining data facility close to Beowulf’s Hardin Generating Station.
And with the speed at which Marathon is expanding its mining operations, the two partners are having to build another large mining data center in the north east of United States.
It’s expected the new data center will house most of the newly acquired Bitcoin miners.
$MARA Stock Price Rising Faster Than Its Bitcoin Hashrate
Marathon Patent Group ($MARA) stock price has risen more than x10 since it started expanding its Bitcoin mining operation in the summer of 2020.
At the end of Q2 $MARA was trading at $0.90, whereas at close on 31 December, 2020 the price was $10.44. Interestingly down from its $13.97 peak on December 16.
Since the news of the latest purchase was released, the markets have been closed, so it will be interesting to see the $MARA price at open on Monday.
Bitcoin Mining Industry Is Attracting Big Business
Marathon’s huge ASICs mining rig purchase is the largest dollar order in the mining industry.
It’s an ongoing trend that has been happening throughout 2020 as all major mining firms try to up their Bitcoin hashrate.
The trend is squeezing out solo miners as it is making it more difficult for them to get their hands on the latest ASIC mining devices directly from the manufacturer.
Unfortunately this is the nature of business, and a nascent and promising industry like Bitcoin mining is only going to attract more big businesses.
At over 10 EH/s Marathon will be one of the biggest players in the Bitcoin mining industry, and as the Bitcoin price accelerates, we should expect the Bitcoin hashrate to follow suit.
Author: Tommy Limpitlaw
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