Marathon Digital, a Bitcoin mining firm, signed an $80 million agreement with Kenya’s Ministry of Energy and Petroleum to boost the country’s renewable energy infrastructure.
Market observers explained that the partnership supports Marathon’s strategy to diversify its operations as mining difficulty increases.
Marathon to Build Green Data Centers in Kenya
Marathon Digital plans to invest over $80 million in developing renewable energy data centers. Kenya’s energy grid is approximately 80% renewable, leveraging wind, solar, hydroelectric, and geothermal sources, with geothermal energy being the largest contributor.
Furthermore, the initiative is expected to kickstart Marathon’s mining operations in Kenya, marking a significant step in its global expansion. Crypto environmentalist Daniel Batten praised the partnership, suggesting it points to the future of Bitcoin mining.
“Bitcoin mining’s future entails the development of more renewable energy that otherwise would have been unprofitable to monetize (geothermal in Kenya’s case). [This would] economically benefit entire nation-state [and ensure] geographic diversity of hashrate,” Batten noted.
Read more: Bitcoin Mining From Home: Is It Possible in 2024?
Marathon Digital CEO Fred Thiel emphasized the strategic benefits of partnering with Kenya, highlighting the country’s pivotal role in the digital currency evolution.
“Kenya has a special spot in the history of digital currencies as it is the home of M-PESA, which in 2007 was one of the first ways for people in Kenya and now across Africa to transmit value digitally by using mobile phone credits. Today tens of millions of people across Africa use M-PESA for branchless money transfers,” Thiel stated.
The initiative comes amid rising energy costs and increasing network mining difficulty. This week, Bitcoin’s mining difficulty rose 1.48% at block height 844,704, reaching 84.38 trillion. The increasing difficulty shows that more miners are joining the network, coinciding with a spike hash rate.
Read more: Is Crypto Mining Profitable in 2024?
Marathon Digital is the largest Bitcoin mining firm. Its stock market capitalization is approximately $6 billion, and the company holds more than 17,000 BTC.
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