Marathon Digital (MARA) Purchases Texas Wind Farm for Bitcoin Mining Operations

TLDR:

• Marathon Digital acquired a 240MW wind farm in Hansford County, Texas, with 114MW of wind capacity
• The facility will operate using 100% renewable wind energy with zero-marginal energy costs
• The company will repurpose retired ASIC mining hardware at the new facility
• The deal is expected to close in Q1 2025, pending regulatory approvals
• Marathon recently announced a $700M convertible notes offering to buy Bitcoin

Marathon Digital Holdings has made a strategic move into renewable energy with the purchase of a wind farm in Hansford County, Texas. The facility features 240 megawatts of interconnection capacity and 114 megawatts of nameplate wind capacity, positioning the company to operate a completely wind-powered Bitcoin mining center.

The acquisition, which is expected to close in the first quarter of 2025 pending regulatory approvals, involves a purchase from a joint venture between National Grid Plc and the Washington State Investment Board. While the financial terms remain private, the deal represents a major step in Marathon’s strategy to integrate sustainable energy sources into its mining operations.

The new facility will operate with zero-marginal energy costs, as it will be powered entirely by on-site wind energy. This approach eliminates traditional energy expenses for the company’s operations and marks a departure from conventional mining practices that rely on the standard power grid.

Fred Thiel, Marathon’s Chairman and CEO, explained that the facility will only mine Bitcoin when wind energy is available, which is expected to be approximately 30% of the time. During periods of low wind, the mining operations will pause, ensuring the facility maintains its commitment to renewable energy usage.

The company plans to implement an innovative approach to hardware utilization at the new site. Through its Advanced ASIC Retirement Initiative, Marathon will repurpose older generation mining machines that would otherwise have been written off or sold in secondary markets, giving them a second life powered by wind energy.

This strategy serves multiple purposes: it extends the economic life of existing hardware, reduces electronic waste, and maintains cost-effective operations despite using older equipment. The approach aligns with both environmental and financial goals, as highlighted by Marathon’s CFO Salman Khan.

The timing of this acquisition comes as large technology companies, particularly those focused on artificial intelligence, are consuming increasing amounts of electricity. This trend has created more competition for grid power, pushing Bitcoin miners to explore alternative energy sources.

Marathon’s recent operational results demonstrate the company’s growth trajectory. In the previous month, Bitcoin production increased by 26% to 907 BTC, while the hash rate grew by 15% to reach 46.1 EH/s, setting new company records.

The wind farm acquisition is part of Marathon’s broader strategy to convert underutilized renewable resources into economic value. This approach aims to reduce grid congestion while advancing renewable energy deployment in the mining sector.

In parallel with the wind farm acquisition, Marathon has announced plans to raise $700 million through a convertible senior notes offering. The company intends to use these funds to purchase Bitcoin and support general corporate activities.

As of November’s end, Marathon’s Bitcoin holdings stood at 34,959 BTC, valued at approximately $3.3 billion at current market prices. The company has acquired 12,965 BTC this year at an average price of $77,692, while mining an additional 8,563 BTC.

MARA Holdings, Inc. (MARA)

The facility’s development will create a behind-the-meter operation, meaning it will generate and consume power on-site. This setup maximizes efficiency and reduces transmission costs typically associated with grid-connected mining operations.

Marathon executives have indicated that this wind farm acquisition may be just the beginning of their renewable energy initiative. The company is exploring additional wind and solar asset acquisitions as part of its long-term sustainability strategy.

The project showcases how energy and data center sectors can work together to create value while supporting environmental initiatives. It demonstrates a practical approach to combining Bitcoin mining with renewable energy infrastructure.

The wind farm’s location in Texas, a state known for its growing renewable energy sector, positions Marathon to take advantage of favorable regulatory conditions and established wind power infrastructure.