The chairman and CEO of Marathon Digital Holdings, Fred Thiel, explains that the recent acquisition of a data center in Garden City, Texas is a strategic shift from an asset-light approach to vertical integration, allowing Marathon to own majority of its mining capacity. The purchase provides additional expansion capacity and prepares the company for the upcoming Bitcoin halving event. Marathon is also pursuing energy harvesting projects, utilizing biomass and methane from landfills for sustainable Bitcoin mining.
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well Marathon digital is increasing its Bitcoin footprint the crypto Miner announcing today that it will buy a data center in Garden City Texas of course all the while Bitcoin retreating from its latest record high as Global risk appetite wobbles a little bit here heading into the weekend joining us now is Fred teal he is CEO of Bitcoin miner Marathon digital joining me from Sunny Miami and let's start with that acquisition of course you acquired applied digital corporations Bitcoin mining data center in Texas that was a
purchase price about $87 million and it was interesting to see this happen Fred because people have been telling me for over a year now that you're going to see more consolidation in the Bitcoin mining Space Walk us through why you bought this data mining Center in particular so Marathon started uh back in really 2017 2018 using an asset light strategy where we hosted our miners with third party operators that works really well in a bull market uh and lets you expand very quickly because you don't invest uh capital in infrastructure just
in your mining capacity now that we've reached scale being one of the largest minories in the world we're very focused on vertically integrating and so we've gone from late last year owning only about 3% of our total mining capacity relative to the infrastructure we now own 53% of that that has a direct impact on our cost to mine which lowers our break even point if you would on a Bitcoin basis uh which is especially important leading into the having so we now have 1.
1 gaw of power uh that our miners um are operating with of which 53% is ours so we're looking forward very much to this site we already had miners running here so this gives us expansion capacity while lowering our cost so all great for the shareholders well Fred you've been busy because this is your second acquisition in about four months or so are you looking for more targets at this point or do you feel set well I think if you look at sort of um guidelines we gave regarding the amount of mining rigs we had in our order pipeline whether ordered or
optioned um you could basically forecast that we have a need for um more capacity uh we're kind of reaching that limit now as we speak but we'll continue to be acquisitive in this space I think post having um there will be some minors whose uh profitability uh may be challenged or who may be looking for an exit um as their revenues will drop because of the price the amount of Bitcoin being awarded will drop and so I think what we'll find is there'll be further consolidation we're very focus
on capacity increases so that'll come from a mix of buying existing sites like these two Acquisitions we've done recently as well as Greenfield sites um we have a team that's very focused on Greenfield sites and then our energy harvesting business is really just getting started and that's where we're taking biomass and methane from landfills and other places and generating energy with that mining Bitcoin with that and then feeding heat back into industrial processes a full virtuous cycle if you would uh so we're
very excited about that as well
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