Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Marathon to pay Hut 8 $13.5 million to take operational control of two bitcoin mining sites

Marathon to pay Hut 8 $13.5 million to take operational control of two bitcoin mining sites

The BlockThe Block2024/02/05 06:43
By:The Block

Quick Take Marathon Digital has agreed to pay Hut 8 a termination fee of $13.5 million to take full operational control of two recently acquired bitcoin mining facilities. Hut 8 will stop providing managed services at the sites by April 30, having previously held a $1.2 million monthly contract with more than four years to go.

Marathon to pay Hut 8 $13.5 million to take operational control of two bitcoin mining sites image 0

Marathon Digital has agreed to pay Hut 8 a termination fee of $13.5 million to take full operational control of its recently acquired bitcoin mining sites in Granbury, Texas and Kearney, Nebraska.

Marathon intends to replace the mining firm as the operator of the sites by April 30, with Hut 8 continuing to provide managed services and conduct self-mining activities in the meantime.

“We are very proud of the work we’ve done since taking over management at the Kearney and Granbury sites and want to recognize the incredible talent and dedication our teams on the ground have demonstrated for more than a year,” Hut 8 President Asher Genoot said in a statement today. “We anticipate an orderly transition of operations in the coming months and look forward to providing updates about our future plans as we are able to.”

Marathon closed a deal to secure ownership of the sites from Generate Capital for $178.6 million on Jan. 16. However, Hut 8 continued to manage operations at the sites under its agreement with the former owner.

Hut 8 forgoes $1.2 million-per-month contract

Hut 8 inherited the service agreement following a merger with USBTC last year. Hut 8’s contract still had a term of more than four years to go, valued at $1.2 million per month, TheMinerMag previously reported .

Subsidiaries of Marathon and Hut 8 agreed to terminate the contract on Jan. 30 and transition operational responsibilities to Marathon. In doing so, Marathon expects to reduce its operating fees, improving its production cost to mine bitcoin at the sites, the firm said yesterday.

“By operating the sites in Granbury and Kearney ourselves, we will be able to fully recognize the operational and economic benefits of owning these assets,” Marathon Chairman and CEO Fred Thiel said. “We look forward to gaining more influence over our new sites in Texas and Nebraska and leveraging our operational expertise to realize the full benefits of our recent acquisition.”


0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like