Marathon raises $200M to buy Bitcoin miners

Crypto mining firm Marathon raised $200 million last December to buy over 100,000 additional Bitcoin mining rigs.

Marathon says China’s Bitmain will deliver around 15% of the miners over the next three months, but the company stopped short of confirming when the rest will land.

“[…] If all the miners we have purchased were deployed today, and Bitcoin’s price were $28,000, we would produce approximately $618 million in revenue annually and approximately $523 million in gross profit annually,” said Marathon chief Merrick Okamoto in a press release.

Projected hashrate chart courtesy of Marathon.

Markets reacted positively to news that the company can pay off its Bitmain tab. MARA stock jumped nearly 20% on Monday morning, but has since returned to sit 6% up for the day.

Impressively, Marathon’s share price has risen 1,000% in the past year, growing its market value to $600 million.

That’s significantly more than Bitcoin, but Marathon trails competitors Riot, Hive, and Bit Digital for returns since this time in 2020 — the latter having exploded by 7,000% to a market value beyond $1 billion.