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FORT LAUDERDALE, FL, May 9, 2023 (GLOBE NEWSWIRE) — Marathon Digital Holdings (NASDAQ:mara) (“marathon” or “company”)a leader in supporting and protecting the Bitcoin ecosystem, and zero two (registered name FS Innovation), an emerging blockchain and digital asset infrastructure development company focused on accelerating the global digital economy while supporting the Abu Dhabi grid, today announced further details regarding the formation of a joint venture (JV) , to build the first large-scale immersive bitcoin mining operation in the Middle East.
The newly formed Abu Dhabi Global Markets joint venture entity (“ADGM Entity”) will initially develop and operate two digital asset mining sites with a combined capacity of 250 MW. The larger 200MW site will be located in Masdar City, Abu Dhabi’s sustainable development centre, while the 50MW site will be located in the Mina Zayed port area. To power the site, Marathon and Zero Two intend to use Abu Dhabi’s excess energy, increasing the baseload and sustainability of the Abu Dhabi grid. Marathon and Zero Two will offset any non-sustainably produced electricity with clean energy certificates.
The ADGM entity’s equity is 80% in Zero Two and 20% in Marathon. During the development period through 2023, the capital contribution in proportion to the ADGM entity’s equity is expected to total approximately $406 million. These contributions will include both cash and in-kind (ie equipment, infrastructure, etc.) amounts. The digital assets mined by ADGM entities (i.e. Bitcoin) will be distributed twice a month according to the equity distribution between Zero Two and Marathon.
Previously, Marathon and Zero Two launched a pilot program to test the effectiveness of building a large-scale digital asset mining operation in Abu Dhabi, where the desert climate has historically made air-cooled digital asset mining unfeasible. To overcome these environmental challenges, Marathon and Zero Two developed a custom immersion solution to cool the ASIC miners and implemented proprietary software to optimize their performance. Preliminary results from the pilot project, including a significant reduction in the amount of maintenance required for ASIC miners to efficiently generate hashrate, show that with the implementation of Marathon and Zero, it is now feasible to operate an immersive digital asset mining site in Abu Dhabi. technological progress.
The mining equipment and infrastructure required to build each site has been ordered, and the construction of two 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 in the world. According to the current construction progress, the two sites are expected to go online before the end of 2023, with a total computing power of about 7 EH/s.
“Our strategic alliance with Marathon marks a major milestone for the blockchain and digital asset industry in Abu Dhabi,” said Ahmed Al Hameli, CEO of Zero Two. “The alliance leverages Zero Two’s regional expertise, extensive relationships and growing capabilities in blockchain infrastructure development and operations, and Marathon’s technical prowess in developing digital asset sites and innovative mining technologies. These synergies create a A strong combination and lays the groundwork for the success of this pioneering project in the Middle East. Marathon shares our commitment to actively supporting Abu Dhabi’s grid and developing a global digital asset infrastructure. We look forward to working with them on this business.”
Fred Thiel, Chairman and CEO of Marathon, commented: “Our partnership with Zero Two is a pivotal moment for Marathon, in line with our commitment to operating at the leading edge of the technology curve and developing innovative technology solutions to advance the Bitcoin mining industry. Spirit.. For this project, our team successfully co-developed and implemented a complete immersive solution and developed a proprietary mining software from the ground up to provide flexibility, resilience and optimization. At Zero Two, We have found a valuable collaborator whose expertise in digital asset infrastructure development, and his connections in the region are the perfect complement to our team’s unique ability to build and implement innovative technologies. We look forward to Working together to build the next generation of 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 in Item 1A, “Risk Factors,” of our most recently filed Annual Report on Form 10-K for the fiscal year ended December 31, 2022 March 16, 2023 for consultation with the SEC. Should any of these risks materialize, our business, financial condition or results of operations could be affected. In such event, the value of our securities may decrease and you may lose some or all of your investment. The risks and uncertainties we have described are not the only risks and uncertainties that we face. Other risks that are not currently known to us or that we currently deem immaterial could 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 predict future results. Future changes in the mining difficulty rate of the entire network or the hash rate of digital assets may also have a significant impact on the future performance of Marathon’s production of Bitcoin. Additionally, all discussions of financial metrics assume mining difficulty rates as of May 2023. Please see “Forward-Looking Statements” below.
forward-looking statement
Statements 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, as amended. Forward-looking statements can be identified by the use of words such as “may,” “will,” “plan,” “should,” “anticipate,” “anticipate,” “estimate,” “continue” or similar terms. Such forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which cannot be accurately predicted and some of which may not even be expected and involve factors that could cause actual results to differ materially from expectations or results. suggestion. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above and others under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K, which may supplement or be determined by the Company’s Quarterly Reports on Form 10-Q revised. The company undertakes no obligation to update or supplement forward-looking statements that become untrue as a result of subsequent events, new information or otherwise.
About Marathon Digital Holdings
Marathon is a digital asset technology company focused on supporting and protecting the digital asset ecosystem. The company is currently on track to become one of the largest and most sustainable digital asset mining operations in North America.
Marathon Digital Holdings company touch:
Phone: 800-804-1690
e-mail: ir@mara.com
Marathon Digital Holdings Media Contact:
e-mail: marathon@wachsman.com
Source: Marathon Digital Holdings, Inc.
Published May 9, 2023
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