Marathon Digital Holdings and Zero Two To Develop and Operate the First Large-Scale Immersion Bitcoin Mining Facilities in Abu Dhabi
09 Maio 2023 - 5:05PM
Marathon Digital Holdings, Inc.
(NASDAQ:MARA) ("Marathon"
or "Company"), a leader in supporting and securing the
Bitcoin ecosystem, and
Zero Two (Registered name
FS Innovation), an emerging blockchain and digital assets
infrastructure development company focused on accelerating the
global digital economy while supporting the power grid of Abu
Dhabi, today announced further details regarding the formation of a
joint venture (JV) to establish the first large-scale immersion
Bitcoin mining operations in the Middle East.
The newly formed Abu Dhabi Global Markets JV Entity (the “ADGM
Entity”) will initially develop and operate two digital asset
mining sites with a combined capacity of 250 megawatts. The larger
200MW site will be located in the sustainability hub of Abu Dhabi,
Masdar City, and the 50MW site will be located in the port zone of
Mina Zayed. To power the sites, Marathon and Zero Two intend to
leverage excess energy in Abu Dhabi, increasing the base load and
sustainability of the Abu Dhabi grid. Marathon and Zero Two will
offset any non-sustainably produced electricity with clean energy
certificates.
The equity ownership in the ADGM Entity will be 80% for Zero Two
and 20% for Marathon. During the 2023 development period, capital
contributions, in proportion to the equity interest in the ADGM
entity, are anticipated to total approximately $406 million in
aggregate. These contributions will consist of both cash and
in-kind (i.e., equipment, infrastructure, etc.) amounts. The
digital assets mined (i.e., bitcoin) by the ADGM Entity will be
distributed twice per month and in accordance with the equity
ownership between Zero Two and Marathon, respectively.
Previously, Marathon and Zero Two launched a pilot program to
test the efficacy of building a large-scale digital asset mining
operation in Abu Dhabi, where the desert climate has historically
rendered air-cooled digital asset mining infeasible. To overcome
these environmental challenges, Marathon and Zero Two developed a
custom-built immersion solution to cool the ASIC miners and
implemented proprietary software to optimize their performance. The
initial results of the pilot project, which include a significant
reduction in the amount of maintenance required for the ASIC miners
to effectively produce hash rate, indicate that operating immersion
digital asset mining sites in Abu Dhabi is now feasible with the
implementation of Marathon’s and Zero Two’s technological
advancements.
The mining equipment and infrastructure required to build each
site has already been ordered, and construction of both digital
asset mining sites is currently underway. Once operational, these
sites are expected to be among the most technologically advanced
and energy-efficient digital asset mining operations globally.
Based on the current construction schedules, both sites are
expected to come online before the end of 2023, with a combined
hash rate of approximately 7 EH/s.
“Our strategic alliance with Marathon marks a significant
milestone for the blockchain and digital assets industry in Abu
Dhabi,” said Ahmed Al Hameli, Chief Executive Officer of Zero Two.
“This alliance leverages Zero Two’s regional expertise, expansive
relationships, and growing blockchain infrastructure development
and operational capabilities, with Marathon’s technical prowess in
developing digital asset sites and innovative mining technologies.
These synergies create a powerful combination and lay the
groundwork for the success of this pioneering project in the Middle
East. Marathon shares our commitment to actively supporting Abu
Dhabi’s power grid and developing global digital assets
infrastructure. We look forward to working with them on this
venture.”
Fred Thiel, Marathon’s chairman and CEO, commented, “Our
collaboration with Zero Two is a pivotal moment for Marathon and
one that is consistent with our ethos of operating at the forefront
of the technology curve and developing innovative technology
solutions to advance the Bitcoin mining industry. For this project,
our team successfully co-developed and implemented a full immersion
solution, as well as developed proprietary mining software from the
ground up to provide flexibility, resilience, and optimization. In
Zero Two, we have found a valuable collaborator whose expertise in
digital asset infrastructure development, and whose relationships
in the region are an optimal complement to our team’s unique
ability to build and implement innovative technologies. We look
forward to working together to build the next-generation Bitcoin
mining facilities in Abu Dhabi.”
Investor Notice Investing in our
securities involves a high degree of risk. Before making an
investment decision, you should carefully consider the risks,
uncertainties and forward-looking statements described under "Risk
Factors" in Item 1A of our most recent Annual Report on Form 10-K
for the fiscal year ended December 31, 2022, filed with the SEC on
March 16, 2023. If any of these risks were to occur, our business,
financial condition or results of operations would likely suffer.
In that event, the value of our securities could decline, and you
could lose part or all of your investment. The risks and
uncertainties we describe are not the only ones facing us.
Additional risks not presently known to us or that we currently
deem immaterial may also impair our business operations. In
addition, our past financial performance may not be a reliable
indicator of future performance, and historical trends should not
be used to anticipate results in the future. Future changes in the
network-wide mining difficulty rate or digital asset hash rate may
also materially affect the future performance of Marathon's
production of bitcoin. Additionally, all discussions of financial
metrics assume mining difficulty rates as of May 2023. See
"Forward-Looking Statements" below.
Forward-Looking Statements Statements made
in this press release include forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements can be identified by the use of words
such as “may,” “will,” “plan,” “should,” “expect,” “anticipate,”
“estimate,” “continue,” or comparable terminology. Such
forward-looking statements are inherently subject to certain risks,
trends and uncertainties, many of which the Company cannot predict
with accuracy and some of which the Company might not even
anticipate and involve factors that may cause actual results to
differ materially from those projected or suggested. Readers are
cautioned not to place undue reliance on these forward-looking
statements and are advised to consider the factors listed above
together with the additional factors under the heading “Risk
Factors” in the Company's Annual Reports on Form 10-K, as may be
supplemented or amended by the Company's Quarterly Reports on Form
10-Q. The Company assumes no obligation to update or supplement
forward-looking statements that become untrue because of subsequent
events, new information or otherwise.
About Marathon Digital
Holdings Marathon is a digital asset technology
company that focuses on supporting and securing the digital asset
ecosystem. The Company is currently in the process of becoming one
of the largest and most sustainably powered digital asset mining
operations in North America.
Marathon Digital
Holdings Company Contact: Telephone:
800-804-1690Email: ir@mara.com
Marathon Digital Holdings Media
Contact:Email: marathon@wachsman.com
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