Marathon Digital continues to develop its footprint as a part of diversification efforts that double as cost-reduction measures forward of the bitcoin halving.
The Florida-based bitcoin miner is constructing a brand new 27-megawatt venture in Paraguay powered by hydro power. This marks Marathon’s second worldwide deployment, the corporate mentioned Tuesday.
Marathon is partnering with Penguin Infrastructure Holding to ascertain a brand new operation close to Paraguay’s Itaipu Dam. The corporate mentioned it goals to attain 1.1 exahash per second (EH/s) of computing energy by the start of subsequent 12 months.
Charlie Schumacher, Marathon’s vp of company communications, advised Blockworks in an e mail there are numerous nations that may profit from cheaper and extra dependable energy.
“By diversifying geographically, we have now a possibility to enhance our margins, cut back focus threat in our enterprise and additional decentralize the Bitcoin community’s hash fee, doubtlessly all whereas serving to numerous nations and companies enhance their economics and cut back their emissions,” he added.
Earlier this 12 months, Marathon expanded into the United Arab Emirates by means of a three way partnership with FS Innovation. As of the tip of October, the corporate reported having 2.3 EH/s of mining capability up and operating in Abu Dhabi. It goals to extend this to 7 EH/s by 12 months’s finish.
“After proving that we will efficiently deploy internationally with our venture in Abu Dhabi, we’re persevering with to develop into new markets with extra or stranded power,” Thiel mentioned in a Tuesday assertion.
Paraguay produces roughly 32 terawatt hours of surplus power per 12 months, he added.
Learn extra: Marathon CEO: ‘Range in web site combine’ is essential to future development
Marathon’s worldwide deal follows its settlement with Nodal Energy final week to launch a mining venture in Utah powered by landfill methane fuel.
The corporate’s steady enlargement efforts come months earlier than the following bitcoin halving slated for April 2024.
This occasion — occurring roughly each 4 years — reduces mining rewards, which is predicted so as to add monetary stress to sure corporations within the phase. Per-block rewards for miners are set to lower from 6.25 bitcoin (BTC) to three.125 BTC this time round.
Although geographic enlargement isn’t “inherently vital earlier than the halving,” Schumacher defined, it’s a core a part of Marathon’s development technique.
“As we method the halving, we’re centered on decreasing our prices,” he added. “One approach to cut back our prices to mine is to search out new websites or develop new strategies of mining which are cheaper than conventional strategies.”
