With the purchase of the Antminer S-19 XP Miners, Marathon Digital is arguably positioning itself as one of the most dominant players in the Bitcoin mining industry.
The details of the undisclosed number of Bitcoin miners purchased from Bitmain Technologies by Marathon Digital Holdings Inc (NASDAQ: MARA) have been unveiled in a new filing by the latter company lodged with the Securities and Exchange Commission (SEC). Per the filing, Marathon Digital said the deal involved some 78,000 next-generation Antminer S-19 XP Miners, which it affirmed it will be paying a total of $879,060,000 for the devices.
Marathon Digital remains amongst the most prominent crypto mining firms that have recorded massive growth traction this year. As detailed in its earlier announcement, the new miners will be deployed growing its overall Bitcoin mining operations.
“Given the strength of our balance sheet and our asset-light model, which allows us to invest our capital into mining machines rather than infrastructure, we were uniquely positioned to place the largest single order of S19 XPs, in terms of total hash rate, BITMAIN has ever received,” said Fred Thiel, Marathon’s CEO. “With this latest purchase of S19 XPs, we will be growing our Bitcoin mining operations to approximately 199,000 total miners and 23.3 EH/s by early 2023. This growth represents more than a 600% increase from our current hash rate and a 75% increase from our prior projection of 13.3 EH/s by the middle of 2022.”
According to the firm, the miners will be delivered in six batches with each billed to feature 13,000 machines monthly beginning in July through December 2022. At the end of the delivery period, Marathon Digital is projected to have as many as 199,000 miners in operation as early as the beginning of 2023. Just as the delivery period is extended, Marathon Digital also noted that the payments for the machines will be spread out in three installments.
“The purchase price is $879,060,000. The purchase price for the miners shall be paid as follows: 35% of the total amount within two days of execution of the purchase contract, 35% of each single shipment price at least six months prior to each such shipment, and the remaining 30% of each single shipment price at least one month prior to each such shipment,” the SEC filing reads.
Marathon Digital is Positioning for the Future
With the purchase of the Antminer S-19 XP Miners, Marathon Digital is arguably positioning itself as one of the most dominant players in the Bitcoin mining industry. Despite the fact that there is just about 10% of the total supply of Bitcoin left to be mined, Marathon Digital wants to cop as much as it can in anticipation of potential and continuous price growth in the digital currency.
The company reportedly mined over 3000 BTC this year thanks to its consistent purchases of new miners, and with the help of the yet-to-be-delivered Antminers, it will be looking to beat its own record in the coming year, and beyond.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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