Marathon Digital inks LOI with Compute North for hosting 300 MW of bitcoin mining
May 24, 2021 9:05 AM ETMarathon Digital Holdings, Inc. (MARA)MARABy: Khyathi Dalal, SA News Editor3 Comments
- Marathon Digital (NASDAQ:MARA) entered into a binding letter of intent with Compute North to host ~73K of the company's earlier purchased Bitcoin miners as part of a new 300-MW data center located in Texas.
- Under agreement terms, Marathon will provide Compute North with an 18-month bridge loan of up to $67M, in tranches, for constructing the facility.
- The initial term of the contract is three years with increases capped at 3% annually thereafter; implementation is planned to take place in stages between October 2021 and March 2022.
- Post all miners installation by end of 1Q22, Marathon's hashrate will be ~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 $0.453 per kWh, and Marathon’s operations will be ~70% carbon neutral.
- Shares trading 3.9% higher premarket