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Marathon to expand hashrate by 600%

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The American mining company Marathon Digital Holdings has signed a contract with Bitmain to purchase a “record” number of Antminer S19 XP Bitcoin (BTC) miners.

Following the delivery schedule, the manufacturer will supply the ordered units from July to December 2022.

In addition to the purchase, Marathon will update some of the equipment. The company expects that after the deployment of new miners; the fleet will amount to approximately 199,000 Bitcoin miners with a combined hashrate of about 23.3 exahash per second (EH/s).

The company’s business model allows investing in equipment

“This growth represents more than a 600% increase from our current hash rate and a 75% increase from our prior projection of 13.3 EH/s by the middle of 2022”. Said Marathon Chief Executive Officer Fred Thiel in a press release.

According to him, the company’s business model allows investing in equipment. Not infrastructure, which made it possible to make a large order. Bitmain noted that Marathon remains one of the “most important clients.”

Earlier, Marathon expanded the agreement with the infrastructure provider Compute North to accommodate more than 100,000 installations for Bitcoin mining. According to previous agreements, the infrastructure firm has committed to install 73,000 miners of the company at facilities in Texas.

A successful third quarter and SEC investigation

Recall that in November, Marathon Digital Holdings has announced an ongoing investigation into it by the U.S. Securities and Exchange Commission (SEC). Therefore, the firm’s stock prices reacted with a collapse.

Thus, the closing price on Monday, November 15, was $75.92. In a Form 10-Q report filed with the SEC, the firm stated: “During the quarter ended September 30, 2021, the company and some of its executives received subpoenas to provide documents and information related to the data center in Hardin, Montana.”

Earlier in October, Marathon reported a successful third quarter. In three months, the firm produced 1,254.4 BTC, which is 91% more than in the second quarter. The company’s cryptocurrency reserves reached 7,035 BTC, including 4,812.66 BTC acquired in January.

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