Company Would Assume 40,000 Square Foot Mining Facility with Power Cost of $0.0285 per KwH, Reducing Mining Cost From $7,400 Per Bitcoin to $3,600 Per Bitcoin
LAS VEGAS, Aug. 26, 2020 (GLOBE NEWSWIRE) -- Marathon Patent Group, Inc. (NASDAQ:MARA) ("Marathon" or "Company"), today announced it has executed a Letter of Intent to acquire Fastblock Mining for 8,658,009 shares of its Common Stock in a private placement transaction exempt from registration. Once the transaction closes, the Company’s cost to mine Bitcoin will decline from $7,400 per Bitcoin to $3,600 per Bitcoin due to the lower than industry-standard electricity cost of $0.0285 per KwH.
Marathon will also acquire 3,304 ASIC Miners from Fastblock’s customers which will increase our deployed ASIC’s from 2,060 to 5,364 Miners and immediately add 208/Ph of Hashing capacity to our current Hashrate of 186/Ph, increasing our current Hashrate to 394/Ph. If all 16,960 ASIC Miners were deployed today, they would produce 1,639/Ph, which at today’s Bitcoin price and the network’s current Hashrate Difficulty, would produce approximately 16 Bitcoin per day and generate monthly revenue of $4,000,000 per month. With a monthly power cost of $1,127,000, this could result in monthly Gross Profits of more than $2,800,000 per month. The foregoing calculation is based on current Bitcoin prices, and a higher or lower Bitcoin price, would result in higher or lower Gross Profit potential, corresponding directly to the differential in Bitcoin price.
Fastblock Mining was established in 2014 by CEO and Co-Founder Bernardo Schucman, an expert in crypto mining. Mr. Schucman has managed the Company’s Mining as a Service (MaaS) business and built or managed 20 data centers having mined over 50,000 Bitcoins, audited by BDO Trevisan. Mr. Schucman will stay on with the combined Company and become Head of Mining Operations. Fastblock’s executive team, consisting of John Blount and Gustavo Caldeira de Andrada, along with the 14 employees at the Atlanta facility, will continue to work at the Company.
The Company will work with Fastblock’s management team to immediately begin expansion of the current power capacity in the Atlanta, Georgia facility from of 15MwH to 45MwH. The facility may be expanded up to a maximum of 100MwH of power should the Company’s expansion efforts require additional power.
Merrick Okamoto, Marathon Chief Executive Officer, stated, “This acquisition completes the final piece of our transformation. We are now well capitalized, control our own future with our own facility with extremely low power costs, and now we have one of the most experienced Bitcoin mining teams to run our operations.”
Bernardo Schucman, Fastblock Mining Chief Executive Officer, stated, “We have been actively seeking a partner that could help us build one of the largest Bitcoin Mining companies in North America. We are extremely pleased to become part of what Marathon has built and look forward to an amazing future together.”
The transaction is expected to close by the end of September 2020 upon completion of a Definitive Agreement and meeting customary closing conditions, including due diligence review.