Marathon Patent Group Announces Letter of Intent to Acquire Fastblock Mining in All Stock Transaction
26 August 2020 - 10:15PM
Marathon Patent Group, Inc. (NASDAQ:
MARA)
("Marathon" or "Company"), today announced it has executed a Letter
of Intent to acquire Fastblock Mining for 8,658,009 shares of its
Common Stock in a private placement transaction exempt from
registration. Once the transaction closes, the Company’s cost to
mine Bitcoin will decline from $7,400 per Bitcoin to $3,600 per
Bitcoin due to the lower than industry-standard electricity cost of
$0.0285 per KwH.
Marathon will also acquire 3,304 ASIC Miners from Fastblock’s
customers which will increase our deployed ASIC’s from 2,060 to
5,364 Miners and immediately add 208/Ph of Hashing capacity to our
current Hashrate of 186/Ph, increasing our current Hashrate to
394/Ph. If all 16,960 ASIC Miners were deployed today, they would
produce 1,639/Ph, which at today’s Bitcoin price and the network’s
current Hashrate Difficulty, would produce approximately 16 Bitcoin
per day and generate monthly revenue of $4,000,000 per month. With
a monthly power cost of $1,127,000, this could result in monthly
Gross Profits of more than $2,800,000 per month. The foregoing
calculation is based on current Bitcoin prices, and a higher or
lower Bitcoin price, would result in higher or lower Gross Profit
potential, corresponding directly to the differential in Bitcoin
price.
Fastblock Mining was established in 2014 by CEO and Co-Founder
Bernardo Schucman, an expert in crypto mining. Mr. Schucman has
managed the Company’s Mining as a Service (MaaS) business and built
or managed 20 data centers having mined over 50,000 Bitcoins,
audited by BDO Trevisan. Mr. Schucman will stay on with the
combined Company and become Head of Mining Operations. Fastblock’s
executive team, consisting of John Blount and Gustavo Caldeira de
Andrada, along with the 14 employees at the Atlanta facility, will
continue to work at the Company.
The Company will work with Fastblock’s management team to
immediately begin expansion of the current power capacity in the
Atlanta, Georgia facility from of 15MwH to 45MwH. The facility may
be expanded up to a maximum of 100MwH of power should the Company’s
expansion efforts require additional power.
Merrick Okamoto, Marathon Chief Executive Officer, stated, “This
acquisition completes the final piece of our transformation. We are
now well capitalized, control our own future with our own facility
with extremely low power costs, and now we have one of the most
experienced Bitcoin mining teams to run our operations.”
Bernardo Schucman, Fastblock Mining Chief Executive Officer,
stated, “We have been actively seeking a partner that could help us
build one of the largest Bitcoin Mining companies in North America.
We are extremely pleased to become part of what Marathon has built
and look forward to an amazing future together.”
The transaction is expected to close by the end of September
2020 upon completion of a Definitive Agreement and meeting
customary closing conditions, including due diligence review.
Investor Notice
Investing in our securities involves a high degree of risk.
Before making an investment decision, you should carefully consider
the risks, uncertainties and forward-looking statements described
under "Risk Factors" in Item 1A of our most recent Annual Report on
Form 10-K for the fiscal year ended December 31, 2019. If any of
these risks were to occur, our business, financial condition or
results of operations would likely suffer. In that event, the value
of our securities could decline, and you could lose part or all of
your investment. The risks and uncertainties we describe are not
the only ones facing us. Additional risks not presently known to us
or that we currently deem immaterial may also impair our business
operations. In addition, our past financial performance may not be
a reliable indicator of future performance, and historical trends
should not be used to anticipate results in the future. See "Safe
Harbor" below.
Future changes in network-wide mining difficulty rate or Bitcoin
hashrate may also materially affect the future performance of
Marathon's production of Bitcoin.
Forward-Looking Statements
Statements made in this press release include forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934. Forward-looking statements can be identified by the use of
words such as “may,” “will,” “plan,” “should,” “expect,”
“anticipate,” “estimate,” “continue,” or comparable terminology.
Such forward-looking statements are inherently subject to certain
risks, trends and uncertainties, many of which the Company cannot
predict with accuracy and some of which the Company might not even
anticipate and involve factors that may cause actual results to
differ materially from those projected or suggested. Readers are
cautioned not to place undue reliance on these forward-looking
statements and are advised to consider the factors listed above
together with the additional factors under the heading “Risk
Factors” in the Company's Annual Reports on Form 10-K, as may be
supplemented or amended by the Company's Quarterly Reports on Form
10-Q. The Company assumes no obligation to update or supplement
forward-looking statements that become untrue because of subsequent
events, new information or otherwise.
Sell- Side Investment Banker
With respect to the above transaction “Buckman, Buckman &
Reid Inc. acted as a non-exclusive Investment Advisor to Fastblock
Mining. Buckman, Buckman & Reid, Inc. was founded in 1988 as a
registered broker dealer with the Securities and Exchange
Commission (“SEC”), Securities Investor Protection Corp. (SIPC) and
member of the Financial Industry Regulatory Authority (“FINRA”).
BB&R is a full-service securities brokerage firm engaged in a
variety of activities, including retail and institutional
brokerage, wealth management, investment advisory services, private
offerings and other investment banking activities
Name: Jason Assad Phone: 678-570-6791 Email:
Jason@marathonpg.com
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