Published
2 months ago on
February 12, 2024
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Bitcoin mining giant Marathon Digital is expanding its business and reportedly exploring Africa as an option.
North America’s most prominent public cryptocurrency miner, Marathon Digital, has recently expanded its business into Paraguay and the UAE and is reportedly looking into setting up shop in Africa.
Africa Sees an Influx of Crypto Miners
According to a recent report on the crypto media platform Blockworks, Marathon Digital is considering expanding its operations into Africa. Marathon Digital’s Vice President of Corporate Communications said to Blockworks, “We are looking at Africa.” Adding;
“We believe that bitcoin mining is, among other things, a technology solution for the energy sector, and Africa may be a great place to prove out this thesis.”
The Florida-based Marathon Digital has ventured into Paraguay and the United Arab Emirates (UAE) recently and is investigating Africa’s viability as a mining opportunity. According to a recent Bloomberg report, Africa is seeing an influx of miners. Bloomberg reports Ethiopia has seen an inflow of miners as companies within the mining industry search for low-cost energy and ideal climate spaces. The news agency further says that Africa has become home to Chinese mining companies forced out of operating in China after the government banned crypto mining in 2021.
Commenting on Africa’s favourable low-cost energy supplies, Schumacher told Blockworks that certain African countries have stranded or underutilized power. He added:
“If we can attach bitcoin miners to these power sources, then we can increase the profitability of those power sources and ensure they stay online for the people who need them. Across the continent, there is also a need for more power. Bitcoin miners can incentivize the buildout of more power across the continent by serving as the first customer for new power projects.”
Marathon Digital Shifts Strategy
Marathon Digital recently released its quarterly earnings report, revealing new strategies it would undertake ahead of the Bitcoin Halving in 2024. In preparation for the impending Halving event, Marathon indicated it elevated its Bitcoin production by 467% in a year and increased its hash rate from 7 EH/s at the same time a year ago. According to its report, its improved production rate allowed the company to reach BTC production from 416 BTC (Q3 2022) to a whopping 3,490 BTC in Q3 2023.
In addition to its impressive upgrades, the miner said it is shifting its focus to international joint ventures. Marathon indicated its 2024 strategy includes 30% expansion through establishing new plants in Abu Dhabi and Paraguay.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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