Marathon Digital’s ‘Record Purchase’ of Bitcoin Miners Will Cost $879M
The miner said 13,000 machines will be delivered each month from July to December 2022.
Dec 29, 2021 at 10:55 a.m. UTCUpdated May 11, 2023 at 7:10 p.m. UTC
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Marathon Digital (Nasdaq: MARA) agreed to buy 78,000 Antminer S19 XP bitcoin miners from Bitmain for $879.1 million, the company announced Wednesday in an SEC filing.
- The Las Vegas-based miner said 13,000 machines will be delivered each month from July to December 2022.
- The deal was announced a week ago without specifying a cost or the number of machines purchased but calling it a “record number” of bitcoin miners.
- Payment will also be staggered. Marathon said it will pay 35% of the total within two days of execution of the purchase contract. It will pay a further 35% of each shipment price six months before the shipment is made and the balance at least one month prior to shipment.
- Marathon Digital expects to have 199,000 operational miners generating 23.3 exahashes per second by early 2023, a 600% increase from current levels, as previously reported by CoinDesk.
- In 2021, Marathon Digital made large purchases of miners, and in October secured a $100 million revolving line of credit with Silvergate Bank in bitcoin and U.S. dollars to go toward its mining operations and new equipment.
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