Summary by Futu AI
Marathon Digital Holdings, Inc. (Marathon), a prominent Bitcoin mining company, has entered into a definitive agreement to acquire a 200-megawatt Bitcoin mining data center in Garden City, Texas, from Applied Digital Corporation. The acquisition, announced on March 14, 2024, involves an all-cash transaction valued at $87.3 million. This strategic move is set to increase Marathon's Bitcoin mining portfolio to 1.1 gigawatts, with 54% of this capacity being directly owned and operated by the company. The Garden City data center, which predominantly uses renewable energy from an adjacent wind farm, was constructed and energized in 2023 and currently supports a workforce of approximately 25 employees. Marathon, already a customer at this data center, will take direct ownership of its operations and gain an additional 100 megawatts of capacity for expansion. The transaction is expected to reduce Marathon's cost per coin by approximately 20% at the site and is subject to customary closing conditions, with an expected completion in the second quarter of 2024.