Marathon Digital Eyes African Expansion for Bitcoin Mining

American mining company Marathon Digital has made global expansion a strategic priority and is considering entering the African market, reports Blockworks.

In November 2023, the Florida-based firm began bitcoin mining operations in Paraguay, partnering with Penguin Infrastructure Holding to establish a data center.

This venture marks Marathon’s second international project following the launch of a joint mining center with Zero Two in Abu Dhabi.

“We are looking at Africa. We believe bitcoin mining is, among other things, a technological solution for the energy sector. Africa could be an excellent place to prove this thesis,” stated the company’s Vice President Charlie Schumacher.

Earlier, Bloomberg reported on the influx of Chinese miners to Ethiopia. Industry participants continue to seek favorable jurisdictions for operations following China’s cryptocurrency mining ban. The African country attracted them with its low-cost electricity and favorable climate.

According to Schumacher, some countries on the continent face challenges due to low electricity demand, leading to underutilized generation capacity.

“If we connect bitcoin miners to these power sources, we can increase their profitability and ensure they remain online for those who need them,” explained the Marathon representative.

Digital gold miners, as initial clients of energy projects, could stimulate their development across Africa.

Marathon’s competitor, Riot Platforms, has focused on expanding its capacity in the United States. The company announced the launch of the first 100 MW phase of a new facility in Corsicana (Navarro County, Texas) in March.

Riot’s Corsicana Facility is underway!⚡️The 400MW substation is expected to be energized by the end of March 2024, and the first 100MW building, A1, will commence operations immediately thereafter. Additional buildings comprising the 400MW Phase 1 buildout of the Corsicana… pic.twitter.com/in1rWQLf4w

— Riot Platforms, Inc. (@RiotPlatforms) February 8, 2024

Within a year, the facility’s capacity will reach 400 MW, eventually expanding to 1 GW.

One of the largest American bitcoin miners, Core Scientific, successfully completed its business reorganization under Chapter 11 of the U.S. Bankruptcy Code in January. A company representative told Blockworks they hope to execute a “pragmatic multi-year growth plan” for an additional 372 MW of infrastructure in Texas.

“We continuously evaluate expansion opportunities both within and outside the United States and believe that a consistent and favorable regulatory framework is crucial for the long-term success of mining and the security of the bitcoin network,” he said.

Las Vegas-based CleanSpark announced in February the acquisition of three operational bitcoin mining facilities in Mississippi with a combined hashrate of 2.4 EH/s.

Back in December, Marathon announced the acquisition of two mining data centers from Generate in Texas and Nebraska.