• Marathon Digital is initiating a $406 million joint venture with FS Innovation to build and run bitcoin mining operations in Abu Dhabi.
• The project’s first phase will be activated with two digital asset mining sites comprising 250 MW. Marathon Digital will own a 20% stake in the company, while FS Innovation will hold an 80% stake.
• Marathon Digital chief executive officer Fred Thiel recently disclosed that the company has made significant progress in increasing its hash rate and getting its energy from a more sustainable source.
Marathon Digital, a crypto mining company, has announced their plan to launch a joint venture with FS Innovation in Abu Dhabi. This venture, worth $406 million, will involve the construction and operation of two digital asset mining sites, each boasting 250 megawatts of power. Marathon Digital will own a 20% stake in the project, while FS Innovation will hold the remaining 80%.
Marathon Digital has a track record of running their operations on leased facilities and contracts with hosting providers. After offsetting accrued debts, the company closed their balance sheet with $104 million in 2022. The crypto winter, as well as high energy costs, has caused many crypto mining firms to close their doors. However, Marathon Digital CEO Fred Thiel believes that the company has the potential to become the largest crypto mining company in the world. To achieve this, the company has made significant progress in increasing their hash rate and sourcing energy from a more sustainable source. They are aiming to have 23 exahashes of capacity by the second quarter of 2023.
Abu Dhabi, the capital of Dubai, is fast becoming a hub for crypto-centric entities due to its favorable regulations and energy infrastructure. In November of 2022, Swiss-based digital bank Sygnum received approval from the Abu Dhabi Global Market’s Financial Services Regulatory Authority to operate in the area. This was followed by a similar approval from the FSRA for Marathon Digital and FS Innovation to launch their joint venture.
Marathon Digital and FS Innovation have high hopes for this project. They believe that it will not only benefit their own operations, but also the crypto community and economy in Abu Dhabi as a whole. This joint venture is an exciting step forward in the world of cryptocurrency mining, and will hopefully help provide a more sustainable and secure future for the industry.