Marathon Acquires Bitcoin Mining Site from Applied Digital for $87.3M

Marathon Digital, the largest publicly traded bitcoin mining by proprietary hashrate, is set to acquire a 200-megawatt (MW) mining site from its current host Applied Digital for $87.3 million.

Applied Digital announced on Friday that it entered into a definitive agreement with Marathon to sell its Garden City, Texas site for $436,500 per MW. The gross sales price was $97.3 million before “price adjustments contemplated” in the deal.

Applied Digital did not elaborate on the price adjustment terms. However, since mid-January, it experienced a power outage in its Ellendale and Garden City sites in Texas. That caused significant hashrate downtime and production decline for Marathon in January and February.

Applied Digital said the transaction will release $12 million of restricted cash that it previously pledged as collateral for the site’s letter of credit. The deal is expected to close in Q2 this year.