Marathon Digital Holdings Profile
Marathon Digital Holdings, Inc. operates as a digital asset technology company that produces or mines digital assets with a focus on the Bitcoin ecosystem. The company’s strategic initiatives primarily focus on mining and holding bitcoin as a long-term investment.
The company has considered or engaged in owning and operating bitcoin mining facilities or data centers, selling proprietary software or technology to third parties operating in the Bitcoin ecosystem, offering advisory and consulting services to support bitcoin mining ventures in domestic and international jurisdictions, and generating electricity from renewable energy resources or methane gas capture to power bitcoin mining projects. The company is committed to carbon neutrality and growing operations through predominately renewable energy sources. The company’s business is also active in Bitcoin-related projects related to the technological development of immersion, hardware, firmware, mining pools and side chains that use the blockchain cryptography.
As of December 31, 2023, the company operated approximately 210,000 mining rigs globally, with an installed and energized hash rate of approximately 25.2 and 24.7 exahashes per second, respectively. During the year ended December 31, 2023, the company mined 12,852 bitcoin.
In 2023, the company launched a joint venture in Abu Dhabi, United Arab Emirates, which operates two sites with a total capacity of 250 megawatts, of which it owns 20%. In addition, in November 2023, the company launched a joint venture project in Paraguay to support 20 megawatts and expects operations to commence at the site during the quarter ending June 30, 2024. The company intends to continue its international expansion efforts into 2024.
The company deploys miners at sites throughout the United States, as well as in the United Arab Emirates and Paraguay. In the United States, with the exception of the sites in Granbury, Texas and Kearney, Nebraska, which the company acquired in January 2024 and is operated by a third party, all of its sites are currently hosted by third parties to whom it pays a fee.
On January 12, 2024, the company consummated an acquisition of 100% of GC Data Center Equity Holdings, LLC, through its wholly owned subsidiary MARA USA Corporation, pursuant to which it acquired two operational bitcoin mining sites for an aggregate 390 megawatts of operational capacity.
In November 2023, the company launched a joint venture in Paraguay with 1,170 miners energized.
The company completed the installation and energization of approximately 28,000 S19 XPs to commence operations at a Garden City, Texas site during the quarter ended December 31, 2023.
Strategic Focus
The company’s focus in 2023 was on growth execution and transition into a more mature organization with diversified portfolio of bitcoin mining technologies and assets. This focus consisted of both the expansion of operations of the company’s core bitcoin mining business (operating mining rigs at third-party owned and operated data centers), acquiring and operating bitcoin mining sites to host its own bitcoin mining rigs, and operating MaraPool, its proprietary bitcoin mining pool which orchestrates the operation of its fleet of mining rigs.
Intellectual Property
The company owns five patents in the United States and has six patent applications pending. The expiration dates of the company’s patents range from March 2036 and November 2043.
Regulatory Landscape
The company operates within a complex and rapidly evolving regulatory environment and are subject to a wide range of laws and regulations enacted by U.S. federal, state, and local governments, governmental agencies, and regulatory authorities, including the SEC, the Commodity Futures Trading Commission (the CFTC), the Federal Trade Commission (the FTC), and the Financial Crimes Enforcement network of the U.S. Department of Treasury, as well as similar entities in other countries. As the regulatory and legal environment evolves, the company may become subject to new laws and regulations by the SEC and other agencies, which may affect its mining operations and other activities.
History
The company was founded in 2010. It was incorporated in the state of Nevada in 2010. The company was formerly known as American Strategic Minerals Corporation and changed its name to Marathon Patent Group, Inc. in October 2012 and then to Marathon Digital Holdings, Inc. in March 2021.
