The bearish market and increasing regulations are some of the main reasons Bitcoin mining has suffered. Marathon Digital Holdings, one of the leading names in the Bitcoin mining industry, has been no different. But it has looked for non-conventional solutions to its problems and has been successful in it so far. It had intentions to go for improvements in power capacity and hashrate.
The improvements are expected till 2023 as it has continued to make arrangements. It has signed deals with various companies to fulfill its power and computing needs, which will help it fulfill them. Though it had faced doubts recently because of the delays in its installations, the recent addition will help it cope with the ongoing problems.
Here is a brief overview of the power secured by Marathon Digital Holdings and how it will benefit the company in the upcoming years.
Marathon Digital Holdings and its mining needs
Bitcoin mining operations have seen setbacks because of the increased regulations and bearishness in the market. Various governments have increased taxes on mining, while some have asked for reduced operations to decrease the stress on their national grid. As a result, there has been a considerable increase in problems for Bitcoin mining companies.
Marathon Digital has placed itself as of the leading names in this regard. It has proactively sought solutions and secured contracts to fulfill its needs. According to the official statement, it intends to increase its capacity to 324 megawatts from 254 megawatts. As it seems to be mired because of the delays in the upgrades of its facilities, it has gone for alternatives.
Marathon has signed deals with multiple third-part organizations to solve its energy and capacity problems. These companies will provide it solutions for energy and power while also assisting it in reaching the goal of enhancing its hashrate to 23.3 EH/s. Marathon faced an outage in June due to a storm in Montana that knocked out its operations. Its devices had gone offline, and the company faced severe losses.
Contracts with various companies to fulfill its hashrate
The result has been a search for alternatives to fulfill its needs which Marathon Digital completed successfully. According to its CEO Fried Thiel, they have signed deals with companies like Applied Blockchain, Compute North, and some others to fulfill the company’s needs. Its shares grew 20% on Monday as the value of Bitcoin continued to improve, staying above $22K.
It has signed a 200 MW deal with Applied Blockchain to enhance its hosting capacity. It will cater to the hosting needs of Marathon using its facilities in Texas and North Dakota. The prior has a hosting capacity of 90 MW, while the latter has a capacity of 110 MW. It will allow for 66,000 miners, improving the company’s capacity considerably. It will also have the choice to increase the power capacity by 70 MW.
Marathon has had an additional deal with Compute North to increase the additional capacity by 42 MW. It will use Granbury, Texas facility to enhance the hosting. Marathon plans to install 14,000 more miners at Granbury, bringing its capacity to 26,000 miners. The upgradation of this facility is expected to be complete before the close of 2022. Marathon has also signed a deal with some other companies for a 12 MW hosting capacity that will install 4,000 miners.
Marathon Digital has been working on the expansion of its facilities to increase its capacity. It has signed deals with various companies that include Applied Blockchain, Compute North, and some other companies. These will help it enhance its hosting capacity and provide the power required to run these facilities. Once these are completed, Marathon will be able to have a hashrate of 23.3 EH/s.