Marathon Digital Acquires 114-Megawatt Wind Farm in North Texas
Marathon Digital Holdings, a prominent Bitcoin miner in the United States, acquired a 114-megawatt wind farm in Hansford County, North Texas, to integrate renewable energy into its operations. This acquisition, confirmed through a filing with the US Federal Energy Regulatory Commission, was made from a joint venture between National Grid Plc and the Washington State Investment Board. Financial terms were not disclosed, marking a significant milestone in Marathon's commitment to sustainable Bitcoin mining.
Moving the Market to Meet the Electrons
The acquisition alters how the company powers its mining facilities, reducing reliance on traditional power grids. CEO Fred Thiel described the deal as essential for aligning Bitcoin mining with sustainability goals. The wind farm will exclusively power Bitcoin mining rigs when wind energy is available, ensuring cost-effective and environmentally conscious operations.
Thiel stated, “By repurposing machines and energizing them with 100% renewable, zero-marginal energy cost, we’re leveraging renewable resources that would have otherwise been curtailed, reducing our Bitcoin #BTC production costs through vertical integration, and demonstrating MARA’s commitment to environmental stewardship.”
This acquisition comes amid increasing electricity consumption by big tech companies driven by artificial intelligence and data center needs, prompting Bitcoin miners to seek alternative energy sources. Thiel noted that “AI companies can outbid miners for grid power,” pushing Marathon to explore marginal energy sources like wind and solar.
Marathon plans to utilize older-generation mining equipment at the facility, maintaining cost efficiency while contributing to sustainability. The wind farm is expected to operate about 30% of the time based on wind availability, with mining activities pausing during low-wind periods.
Marathon to Buy More Wind Farms
In a separate announcement, Marathon indicated that the deal is expected to close in early 2025, pending regulatory approvals. If approved, it will position Marathon among the first Bitcoin mining firms to utilize renewable energy for operations.
The recent purchase is part of Marathon’s broader push for renewable energy. The company aims to acquire additional wind and solar assets to further minimize its environmental impact and energy expenses. Thiel emphasized, “We see renewable energy as not just a necessity for sustainability but also a competitive advantage.”
This strategic move follows Marathon's earlier financial actions this year. The company announced plans to raise $700 million through convertible senior notes to fund more Bitcoin acquisitions. Year-to-date, Marathon has acquired 12,965 BTC at an average price of $77,692 and mined an additional 8,563 BTC, bringing total holdings to 34,959 BTC valued at $3.3 billion at current market prices.