Marathon Announces Joint Venture To Develop Bitcoin Mining Center In Abu Dhabi
Marathon Digital Holdings, one of the world’s leading crypto mining platforms, has penned a new partnership with FS Innovation to build and operate a Bitcoin mining infrastructure in Abu Dhabi. The project, which is a joint venture deal, will initially consist of two crypto-mining facilities.
Abu Dhabi To Host Bitcoin Mining Sites
According to reports, Marathon Digital, one of the top players in the crypto mining industry, has entered into a joint venture with FS Innovation to develop mining facilities in Abu Dhabi. The firm’s filing revealed that the initial project consists of two digital asset mining centers with 250 MW power.
Furthermore, the ownership of the new project is split between FSI and Marathon at 80% and 20%, respectively, with a total cost of $406 million from the start. Marathon Digital is yet to own a mining facility where it operates. Instead, it gets into a contract with hosting providers in the mining sector.
It is worth noting that the crypto mining market has not had the best periods in recent months, with high energy costs and a decline in the price of Bitcoin making it challenging for miners to be profitable.
As a result, several mining firms are highly indebted, while others are already bankrupt or have filed for bankruptcy. In the United Arab Emirates (UAE), electricity costs per kilowatt are $0.081 for a household compared with that of the United States at $0.175, as revealed by Globalpetrolprices.com.
Becoming The Largest Crypto Mining Firm Globally
Meanwhile, Marathon Digital closed the previous year with $104 million in cash after settling all of its borrowings. At the beginning of January, the firm’s CEO, Fred Thiel, remarked that Marathon had recorded impressive progress after adopting more sustainable energy sources to reduce carbon emissions.
“The firm remains confident in its ability to scale and become the largest and most energy-efficient Bitcoin mining firm worldwide,” Thiel added. Furthermore, the CEO explained that the firm has thousands of miners ready to support its push for energy-efficient mining in the coming months.
The company expects to triple its production capacity to about 23 exahashes by mid-year.
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