Marathon Digital has finalized a deal with Hut 8 to take over the operational control of Bitcoin mining sites by paying a termination fee of $13.5 million.
Marathon’s control of the mining sites in Granbury, Texas, and Kearney, Neb., slated for completion by April 30, follows Marathon’s Jan. 16 acquisition of the sites for $178.6 million. Hut 8 has managed operations under a contract inherited from a previous merger, valued at $1.2 million per month.
The transition aims to enhance Marathon’s operational efficiency and cost-effectiveness in Bitcoin (BTC) mining at these locations.
“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 Digital CEO Fred Thiel said, expressing optimism about leveraging the company’s expertise for greater benefits.
The agreement to shift control marks a significant step for both firms in optimizing their operations and strategic positioning within the crypto mining sector. On the other side, citizens in Granbury have raised concerns about noise pollution attributed to mining activities, showing the community impact of similar operations.
Hut 8 President Asher Genoot praised the teams’ dedication at both sites and anticipated a smooth handover. Despite stepping down as the operator, the company will continue to offer managed services and self-mining activities.