Marathon Digital Takes Over Bitcoin Mines from Hut 8 for $13.5M

Marathon Digital has successfully sealed a transaction with Hut 8, agreeing to assume operational leadership of Bitcoin mining facilities, accompanied by a termination payment of $13.5 million. This move to control the mining operations in Granbury, Texas, and Kearney, Nebraska, set to finalize by April 30, builds on Marathon’s January 16 purchase of these sites for $178.6 million. Hut 8 has been overseeing the sites under a contract from a previous merger, which cost about $1.2 million monthly.

This strategic shift is aimed at boosting Marathon’s efficiency and cost savings in Bitcoin mining at these locations. “Taking direct control of the Granbury and Kearney sites allows us to fully tap into the operational and financial advantages of these assets,” remarked Fred Thiel, CEO of Marathon Digital, highlighting the potential for enhanced performance through the company’s expertise.

The decision to transfer control underscores a crucial development for both companies in refining their operational strategies and market positioning in the cryptocurrency mining industry. Meanwhile, the initiative has sparked community debates in Granbury over the noise pollution associated with the mining activities, illustrating the societal effects of such enterprises.

Despite Hut 8 stepping back from operational duties, Asher Genoot, the company’s President, commended the commitment shown by the teams at both sites and looked forward to a seamless transition. Hut 8 plans to persist in providing managed services and pursuing its own mining ventures, indicating a continued role in the sector.

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