Marathon Digital paid $13.5 million to Hut 8 to operate two Bitcoin mining sites.
Marathon Digital has finalized an agreement with Hut 8 to acquire operational control of the Bitcoin mining site, paying a termination fee of $13.5 million.
Marathon’s takeover of the mine sites in Granbury, Texas, and Kearney, Nevada, scheduled for completion on April 30, follows Marathon’s acquisition of the mine sites on January 16 for $178.6 million. Hut 8 has been managing its operations under a contract it inherited from the previous merger worth $1.2 million a month.
This transition aims to improve Marathon’s operational efficiency and cost-effectiveness in mining Bitcoin (BTC) at these locations.
“By operating the sites in Granbury and Kearney ourselves, we will be able to fully recognize the operational and economic benefits of owning these assets,” said Fred Thiel, CEO of Marathon Digital, leveraging the company’s expertise to further expand the business. He expressed optimism that large profits could be achieved.
The agreement to transfer control is an important step for both companies to optimize their operations and strategic positioning within the cryptocurrency mining sector. Meanwhile, Granbury citizens have raised concerns about noise pollution from mining activities, demonstrating the impact similar operations would have on their community.
Hut 8 Chairman Asher Genoot praised the dedication of the teams at both sites and looked forward to a smooth handover. Despite stepping down from his position as operator, the company will continue to provide managed services and its own mining activities.