The Nasdaq-listed mining enterprise Applied Digital has concluded a definitive pact for selling its 200-megawatt (MW) mining facility in Garden City, Texas. Applied Digital disclosed that the transaction involves Marathon Digital Holdings acquiring the Garden City mining property for a sum of $87.3 million.
Marathon to Acquire Applied Digital's 200 MW Texas Bitcoin Mining Site
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Applied Digital and Marathon Ink $87.3 Million Deal for Texas Mining Operation
On Friday, Applied Digital Corporation (Nasdaq: APLD) revealed the disposal of a 200 MW mining campus situated in Garden City, Texas, to Marathon Digital Holdings (Nasdaq: MARA). Applied Digital conveyed that the property exchanged hands for an approximate value of $87.3 million, with the total gross purchase price reaching $97.3 million, following adjustments specified in the acquisition agreement.
Applied Digital further mentioned that its 2023-built facility was utilized for hosting agreements, with Marathon utilizing the Garden City site among others. Despite acquiring the Texas location, Marathon will continue to be a hosting client at Applied Digital’s North Dakota data center. Applied Digital emphasized its commitment to enhancing and expanding its high-performance computing (HPC) capabilities.
Earlier this week, Applied Digital announced a new partnership with artificial intelligence (AI) start-up Together AI, which will employ Applied Digital’s Nvidia H100 graphics processing units (GPUs) for its operations. Like many in the BTC mining sector, Applied Digital is venturing into the realm of generative AI technology. As far as the sale of the Garden City mining facility is concerned, it is anticipated to be finalized in the second quarter of 2024.
“This strategic transaction represents a purposeful pivot, equipping the company to allocate financial and operational resources toward strategic sites in North Dakota, as well as bolstering our balance sheet strength,” Wes Cummins, the CEO and chairman of Applied Digital said in a statement on Friday. “With a focused emphasis on the building of our HPC data centers, we reinforce our groundwork for enduring growth and operational excellence.”
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