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Marathon, A Bitcoin Mining Company, Has Placed An Order For $900 Million Worth Of Machines

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Marathon Digital Holdings, a Las Vegas-based Nasdaq-listed bitcoin mining company, has placed an order for additional equipment worth $879.06 million.

The purchase price was revealed on Tuesday, despite the fact that the order was published last week. The deal comprises 78,000 Antminer S-19 XP mining machines from Bitmain, which will be delivered through 2022.

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The shipment is organised into six groups, with 13,000 units delivered each month between July and December 2022.

Marathon will also pay Bitmain in instalments. “35 percent of the total cost within two days of purchase contract execution, 35 percent of each single shipment price at least six months prior to each such shipment, and the remaining 30 percent of each single shipment price at least one month prior to each such shipment,” Marathon explained.

According to Marathon CEO Fred Thiel, this is the largest single order Bitmain has ever received for S19 XPs in terms of overall hash rate (140 terahashes per second or TH/s). According to Thiel, the deal will allow Marathon to extend its operations to around 199,000 total machines and increase its hash rate to 23.3 exahashes per second (EH/s) by early 2023.

“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,” he added.

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Marathon is one of the world’s largest publicly traded bitcoin mining firms. According to The Block Research, it is expected to produce over 3,000 bitcoins (now valued more than $143 million) in 2021, based on its track record this year. That is significantly more than its 2020 production of 338 bitcoins.

Following China’s ban on bitcoin mining in October, the proportion of bitcoin miners headquartered in the United States has climbed dramatically. With a hash rate of more than 35%, the United States now dominates the bitcoin mining market.

According to The Block Research, the share of mining businesses situated in the United States is likely to grow further in the coming year. This is due to the fact that these corporations have placed a joint order for approximately 970,000 machines, which will be delivered throughout 2022.