Bitcoin Miner Marathon Eyes Profitability Boost Through Joint Venture with US Power Provider

Nasdaq-listed company Marathon Patent Group is forming a new joint venture with a U.S. power provider that will bring a supply of cheap energy for its bitcoin mining operations.

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In an announcement Tuesday, Marathon said it's teamed up with Maryland-based Beowulf Energy for the venture. Beowulf develops and operates power generation and industrial infrastructure facilities internationally.
The arrangement will see Marathon co-locate a bitcoin mining facility within Beowulf's Big Horn Data Hub at its 105-megawatt power station in Hardin, Montana.
Beowulf will supply electricity for the mining farm at a production cost of $0.028 per kWh, according to the announcement.
That's 38% below Marathon's current aggregate power cost for mining and facility operations, $0.034 per kWh.
The company says this, in turn, will cut its breakeven costs to mine one bitcoin from approximately $7,500 currently to $4,600.
Under the deal, Beowulf is also becoming an equity shareholder in Marathon, while the mining firm will retain all of the bitcoin mined at the Big Horn facility.
Marathon plans to install 11,500 S19 Pro Antminers previously acquired from manufacturer Bitmain; 500 of the devices are already in place, it said.
The facility is expected to be fully operational in Q2 2021, with an output around 1.265 exahashes per second.
Marathon said the center has the capacity for nearly three times the planned number of miners, giving ample scope for future expansion.

Also read: Riot Buys 2,500 More Bitmain Miners in Latest Fleet Expansion

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