arathon Digital Holdings has secured a deal that will provide enough power to contribute 23.3 exahashes per second (EH/s) to the Bitcoin network.
The company announced on Monday that data center operator Applied Blockchain would host 254 megawatts of power, with the option to add another 70 megawatts from various other providers, including Compute North. Marathon anticipates that this hosting agreement will assist it in meeting its goal of 23.3 EH/s in computer power by 2023.
Exahashes per second (EH/s) is the amount of hashing power that a miner contributes to the Bitcoin network's security.
Marathon's Texas facility will receive 90 megawatts from Applied Blockchain, and a North Dakota facility will receive 110 to 180 megawatts. They will contribute approximately 9.2 EH/s when combined.
Compute North has received regulatory approval to provide 42 megawatts of hosting capacity at its Granbury, Texas facility. According to the company, that location will house 26,000 mining devices contributing approximately 3.6 EH/s by the end of 2022.
Several unnamed providers would provide up to 12 megawatts of hosting capacity worth approximately 0.8 EH/s, bringing the total new capacity to 324 megawatts.
CEO Fred Thiel stated in the announcement that the agreements should provide sufficient hosting capacity to enable his company to contribute 23.3 EH/s by 2023. "The first miners to be hosted under these new arrangements are scheduled to be installed in August," he says, "with installations ramping up at other locations in the fourth quarter of this year and continuing into 2023."
Delays in Compute North's regulatory compliance may have contributed to Marathon's 43.8 percent drop in productivity in the second quarter. Hosting was supposed to start in June, but it failed to obtain the necessary permits.
The digital asset company’s lower productivity can also be attributed to the closure of its Hardin, Montana, mining facility, which shut down on June 11 due to a severe storm. That facility accounted for 75% of the mining power and appears to be still offline, as the MARA mining pool has not mined any blocks since the storm.
The new power deals come after US Senator Elizabeth Warren claimed that miners are driving up energy costs for everyone else. Last week, she and five other lawmakers asked the Environmental Protection Agency (EPA) and the Energy Department (DOE) to share their findings on Bitcoin miners' energy consumption trends.