Marathon Digital buys wind farm in Texas, expands renewable energy push

Bitcoin (BTC) miner Marathon Digital has announced the acquisition of a wind farm in Hansford County, Texas, to bolster its sustainability efforts. 

The wind farm, which boasts 240 megawatts (MW) of interconnection capacity and 114 MW of nameplate wind capacity, will be the foundation for a new, sustainable data center. 

Additionally, Marathon plans to develop and operate a behind-the-meter facility powered entirely by the site’s wind energy, with zero-marginal energy costs, effectively eliminating energy expenses for its operations.

The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close by the first quarter of 2025. Once finalized, it will mark a pivotal moment in the company’s ongoing effort to integrate renewable energy into its core business operations.

Focus on renewable energy

This acquisition aligns with Marathon’s broader strategy to convert underutilized renewable resources into economic value. The company’s approach aims to significantly reduce its energy costs, alleviate grid congestion, and advance broader renewable energy deployment, all while contributing to a cleaner energy ecosystem.

Fred Thiel, Chairman and CEO of Marathon Digital, emphasized that the acquisition marks how energy and data center sectors can collaborate to create long-term value and foster sustainability initiatives.

He added:

“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 Marathon’s commitment to environmental stewardship.”

The site will utilize next-generation ASIC mining hardware, some of which would have otherwise been written off or sold in the secondary market. 

Through Marathon’s Advanced ASIC Retirement Initiative, the company will give these retired machines a second life powered by wind energy that would otherwise be curtailed. The program promises to extend the hardware’s economic life while reducing mining operations’ environmental impact.

Marathon Digital CFO Salman Khan highlighted the project’s financial benefits, noting that the initiative will not only extend the lifespan of the mining equipment but also enhance the company’s return on capital employed. 

The firm’s Bitcoin mining operations registered a record last month, with BTC production rising 26% month-over-month to 907 BTC and the hash rate surging 15% to reach 46.1 EH/s.

Moreover, Marathon revealed a plan to raise $700 million through a convertible senior notes offering, using the proceeds to buy Bitcoin and support general corporate activities.

Mentioned in this article