Marathon Digital forms JV to build immersion bitcoin mining sites in Abu Dhabi

Marathon Digital ( NASDAQ: MARA ) said Tuesday it formed a joint venture with Abu Dhabi-based blockchain infrastructure developer Zero Two, registered as FS Innovation, to set up the Middle East's first large-scale immersion bitcoin ( BTC-USD ) mining operations. In immersion mining, mining rigs are submerged in a thermally conductive fluid that absorbs the heat generated by the units. The JV, which will be 80% owned by Zero Two and 20% owned for Marathon ( MARA ), will initially develop two cryptocurrency mining sites with combined capacity of 250 MW. A 200-MW site will be built in Masdar City and a 50-MW site will be set up in Mina Zayed. Investments are expected to total ~$406M, and will include both cash and other items such as equipment and infrastructure. Bitcoin mined by the JV will be distributed twice per month and in accordance with the companies' equity ownership. Marathon ( MARA ) and Zero Two will use excess energy in Abu Dhabi to power the facilities, increasing the base load and sustainability of the city's grid. Non-sustainably produced power will be offset with clean energy certificates. Mining equipment and infrastructure required for each site has been ordered, and construction of the sites is underway. The sites are expected to come online before 2023-end, with a combined hash rate of ~7 EH/s. Marathon ( MARA ) and Zero Two earlier tested the efficacy of a large-scale crypto mining operation in Abu Dhabi as part of a pilot program. More on Marathon Digital Marathon Q1 Preview: Shares Should Rally Barring No Surprises Marathon Digital: Look Out Below