Crypto Mining Firm Marathon Announces $23M Contract With Bitmain

Crypto Mining Firm Marathon Announces $23M Contract With Bitmain

August 19, 2020

Nasdaq-listed cryptocurrency mining company Marathon has entered into a $23 million Long Term Purchase Contract with Chinese crypto mining hardware manufacturer Bitmain for the purchase of 10,500 next generation Antminer S-19 Pro ASIC Miners. This investment is expected to result in Marathon being one of, if not the largest, bitcoin miner in North America.

Marathon is a digital asset technology company that mines cryptocurrencies, with a focus on the blockchain ecosystem and the generation of digital assets. The company currently operate one mining facility in Quebec.

Founded by Jihan Wu and Micree Zhan in 2013, Bitmain designs application-specific integrated circuit (ASIC) chips for bitcoin mining. Bitmain holds one of the most significant market shares in crypto mining equipment, with estimated profits for 2017 between $3 and $4 billion. It also operates the largest cryptocurrency mining pools worldwide, Antpool, BTC.com and connectBTC, as well as hashnest.com, a cloud mining platform.

Marathon Chief Executive Officer, Merrick Okamoto, stated that the execution of this contract with Bitmain represents a milestone event for their company.

“Today’s news comes on the heels of recent incremental business growth through the purchase of what now is expected to total 13,520 next generation miners generating 1.55 Exahash upon full installation,” said Okamoto. “I would like to take this opportunity to thank Bitmain for working with us on this Long Term Purchase Contract, which locks in the purchase price, a substantial discount from the current retail price, and greatly reduces the risk of price increases to the Company and potential shortage of Miner availability in the future.”

Additionally, 1,360 Miners were delivered to Marathon’s Hosting Facility on August 14, and the company anticipates that all of these Miners will be deployed and added to their current 700 Miners presently in operation, bringing the company’s currently installed Miners to 2,060 which will produce 184.6 PH/s. Bitmain will also deliver 500 previously purchased S-19 Pro Miners in September and 500 in November.

“We are pleased to have provided Marathon with Bitmain’s latest generation of Antminer S19 Pro mining hardware,” said Irene Gao, Antminer Sales Director of NCSA Region, Bitmain. “Equipped with the most advanced chipset currently available, the high-performance and low power consumption of the miners will significantly improve operations of Marathon’s mining business. This collaboration continues to strengthen our cooperation and will extend to future work together as Marathon expands its presence in the mining industry.”

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