Key Points
- Marathon Digital Holdings acquires a 114-megawatt wind farm in North Texas for sustainable Bitcoin mining.
- The company plans to use renewable energy sources like wind and solar to reduce environmental impact and energy costs.
Marathon Digital Holdings, a prominent Bitcoin miner in the United States, has made a significant advancement in incorporating renewable energy into its operations. The company has acquired a 114-megawatt wind farm in Hansford County, North Texas.
The purchase was made from a joint venture between National Grid Plc and the Washington State Investment Board, according to a filing with the US Federal Energy Regulatory Commission. The financial details of the deal remain undisclosed, but it signifies Marathon’s commitment to sustainable Bitcoin mining.
Transition Towards Sustainable Mining
The acquisition has transformed the way the company powers its mining facilities, reducing dependence on traditional power grids.
Fred Thiel, Marathon’s CEO, described the acquisition as a crucial step towards aligning Bitcoin mining with sustainability objectives. The wind farm will be used exclusively to power Bitcoin mining rigs when wind energy is available, ensuring operations are both cost-effective and environmentally friendly.
He 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 production costs through vertical integration, and demonstrating MARA’s commitment to environmental stewardship.”
The acquisition comes as large tech companies, driven by artificial intelligence and data center demands, consume increasing amounts of electricity. This has led Bitcoin miners to seek alternative energy sources.
Thiel mentioned, “AI companies can outbid miners for grid power,” which has led Marathon to explore marginal energy sources like wind and solar.
Future Plans for Sustainability
Marathon intends to deploy older-generation mining equipment at the facility, allowing operations to remain cost-efficient while contributing to the company’s broader sustainability strategy. The farm is expected to run about 30% of the time, based on wind availability, with mining operations pausing during low-wind periods.
The company announced that the deal is expected to close in early 2025, subject to regulatory approvals. If approved, Marathon will be one of the first Bitcoin mining firms to adopt renewable energy to power its operations.
Furthermore, the latest purchase is just the beginning of the company’s renewable energy push. Marathon is considering additional acquisitions of wind and solar assets to further reduce its environmental footprint and energy costs.
“We see renewable energy as not just a necessity for sustainability but also a competitive advantage,” Thiel noted.
Earlier in the year, Marathon announced plans to raise $700 million through convertible senior notes to fund additional Bitcoin acquisitions. As of the end of November, the company’s total Bitcoin holdings reached 34,959 BTC, valued at $3.3 billion at current market prices.
