North American listed mining company Marathon Patent Group completes $200 million in financing to pay for mining equipment

Marathon Patent Group, one of the largest Bitcoin mining companies in North America and listed on Nasdaq, announced the completion of a $200 million financing in the public market, Globenewswire reported on January 4. The company ended fiscal 2020 with $217.6 million in cash and 74,656,549 shares outstanding.

The new funds will be used to pay for the purchase of mining machines from Bitmain and further expand the business. The company has currently purchased 103,060 mining machines, which will generate approximately 10.36 EH/s of computing power after delivery and installation. Of these, 15,200 are scheduled to be shipped in the first quarter of 2021, and the company currently expects to install 4,000 in February, 6,300 in March, and 4,800 in April. After the first deposit was paid, Marathon still owed Bitmain $163 million, and the company's current cash position is sufficient to cover the costs of purchasing all the mining machines.

Merrick Okamoto, Chairman and CEO of Marathon, said:

This financing is a milestone for us. It allows us to obtain the necessary funds to pay for the mining machines purchased from Bitmain. In an industry that is changing rapidly, knowing the timing and scale is critical to effectively increase profitability. Based on the unique relationship between the company and Bitmain, we can ensure that the number of mining machines has reached a record level. Due to the sharp increase in the price of Bitcoin and the increase in demand for mining equipment, the prices of mining machines on the secondary market are now multiples of our purchase price.

According to publicly available Bitcoin profit calculators, if all the miners we purchased were deployed and Bitcoin price was $28,000, we would generate approximately $618 million in revenue and approximately $523 million in net profit per year. Marathon is on its way to becoming one of the largest mining companies in North America. This funding round demonstrates that we are not only scaling, but also operating efficiently.