Marathon Digital, a Bitcoin (BTC) mining company, has announced the acquisition of a wind farm in Hansford County, Texas, as part of its sustainability efforts. The wind farm has an interconnection capacity of 240 megawatts (MW) and a nameplate wind capacity of 114 MW. It will serve as the foundation for a new, sustainable data center. Additionally, Marathon plans to develop and operate a facility powered entirely by the wind farm’s energy, effectively eliminating energy expenses for its operations.
The acquisition is expected to close by the first quarter of 2025, subject to customary closing conditions and regulatory approvals. This move is a significant step towards Marathon’s goal of integrating renewable energy into its core business operations.
Marathon’s strategy is to convert underutilized renewable resources into economic value. This approach aims to reduce energy costs, alleviate grid congestion, and promote the deployment of renewable energy. Fred Thiel, Chairman and CEO of Marathon Digital, believes that this acquisition demonstrates how the energy and data center sectors can collaborate to create long-term value and promote sustainability initiatives.
Thiel stated:
“By repurposing machines and powering them with 100% renewable, zero-marginal energy cost, we are leveraging renewable resources that would have otherwise been wasted. This will reduce our bitcoin production costs, demonstrate our commitment to environmental stewardship, and contribute to a cleaner energy ecosystem.”
The wind farm will use next-generation ASIC mining hardware, some of which would have been sold in the secondary market. Through Marathon’s Advanced ASIC Retirement Initiative, these retired machines will be given a second life powered by wind energy that would have otherwise been wasted. This program aims to extend the hardware’s economic life while reducing the environmental impact of mining operations.
Marathon Digital CFO Salman Khan highlighted the financial benefits of this project. He stated that the initiative will not only extend the lifespan of the mining equipment but also enhance the company’s return on capital employed. In the last month, Marathon’s Bitcoin mining operations recorded a 26% increase in BTC production and a 15% increase in hash rate.
In addition to this acquisition, Marathon has announced plans to raise $700 million through a convertible senior notes offering. The proceeds will be used to purchase Bitcoin and support general corporate activities.
In summary, Marathon Digital’s acquisition of a wind farm in Texas is a significant step towards its goal of integrating renewable energy into its core business operations. This move will not only reduce energy costs but also promote sustainability and contribute to a cleaner energy ecosystem.