Marathon Digital Holdings Announces Binding Letter of Intent with Compute North to Host 300-Megawatts of Bitcoin Mining at Ne...
24 May 2021 - 10:00PM
Marathon Digital Holdings,
Inc. (NASDAQ:MARA)
("Marathon" or "Company"), one of the largest enterprise
Bitcoin self-mining companies in North America, has entered into a
binding letter of intent with Compute North to host approximately
73,000 of Marathon’s previously purchased Bitcoin miners as part of
a new 300-megawatt data center located in Texas.
Under the terms of the agreement and based on specified
requirements being met, Marathon will provide Compute North with an
18-month bridge loan of up to $67 million, in tranches, to
construct the facility. The initial term of the contract is three
years with increases capped at three percent per year thereafter.
Implementation is planned to take place in stages between October
2021 and March 2022.
Once all of Marathon’s miners are installed, the Company’s
hashrate will be approximately 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 approximately 70% carbon neutral.
“Compute North is a long-term partner of ours, and by expanding
our working relationship with them through this new agreement, we
have now secured economical hosting arrangements for all 103,120 of
our previously purchased Bitcoin miners,” said Fred Thiel,
Marathon’s CEO. “This agreement sets us on a clear path to becoming
one of the largest, most efficient, and most environmentally
conscious Bitcoin miners in North America. Additionally, the
structure of this agreement is highly advantageous as it allows us
to have the necessary infrastructure for our miners built without
the capital expenditure, and it provides us with the flexibility to
explore alternative locations, should we require them, while
mitigating the risk of price increases.
“Once all our miners are deployed by the end of the first
quarter of 2022, our hashrate will be 10.37 EH/s, and our
operations will be 70% carbon neutral, with our long-term objective
being to obtain a 100% carbon neutral footprint.”
Merrick Okamoto, Marathon’s executive chairman commented, “The
new agreement with Compute North allows us to operate our mining
fleet in regulatory environments that have proven to be friendly to
Bitcoin miners and at rates that we believe are among the lowest in
the country. As we continue to scale our operations to become one
of the leading enterprise miners in North America, we believe our
mining pool will follow suit. Once our miners are fully deployed,
and we have transitioned to a 100% carbon neutral footprint, we
believe our pool will not only be among the top 10 in the world,
but it will be the first and only mining pool which produces 100%
carbon neutral and OFAC compliant bitcoins.”
“We are thrilled to expand our relationship with Marathon and
help achieve their ESG goals through the delivery of carbon neutral
hosting operations,” commented Dave Perrill, CEO at Compute North.
“Because of our unique TIER 0™ data center model, Compute North has
become known as the go-to service provider for large-scale,
low-cost, environmentally friendly hosting and infrastructure, and
we are proud to be a part of Marathon’s success.”
Investor NoticeInvesting 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, 2020. 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. Future changes in the
network-wide mining difficulty rate or Bitcoin hashrate may also
materially affect the future performance of Marathon's production
of Bitcoin. Additionally, all discussions of financial metrics
assume mining difficulty rates as of May 2021. See "Forward-Looking
Statements" below.
Forward-Looking StatementsStatements 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.
About Marathon Digital HoldingsMarathon is a
digital asset technology company that mines cryptocurrencies with a
focus on the blockchain ecosystem and the generation of digital
assets.
About Compute North: Compute North is the North
American leader in TIER 0™ computing. The company provides
efficient, low-cost, and distributed infrastructure for clients in
the blockchain, cryptocurrency mining and the high-performance
computing space. With operations in Minnesota, Texas, South Dakota,
and Nebraska, Compute North brings a unique combination of data
center, energy, and computing expertise to deliver the lowest cost
computing in the world. For additional information, please visit
computenorth.com.
Marathon Digital
Holdings Company Contact:Jason AssadTelephone:
678-570-6791Email: Jason@marathondh.com
Marathon Digital Holdings Investor
Contact:Gateway Investor RelationsMatt Glover and Charlie
SchumacherTelephone:
949-574-3860Email: MARA@gatewayir.com
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