Marathon Patent Group, Inc. Announces Agreement to Acquire 6,000 S-9 Bitmain Miners
August 28 2019 - 8:00AM
Marathon Patent Group, Inc. (Nasdaq: MARA) (“Marathon” or the
“Company”), announced today the signing of an Asset Purchase
Agreement to acquire 6,000 S-9 Bitmain 13.5 TH/s Bitcoin Antminers
(“Antminer S9 miners”). The transaction will be an all-stock
private placement transaction whereby the Company will issue
2,335,000 unregistered Common Stock shares at a price above the
current market. Upon consummation of the transaction, the Company
will have 8,720,405 shares of common stock issued and outstanding.
The Miners will be placed into service in a Co-Location hosting
facility with electricity costs of $0.035 per KwH and $0.02 per KwH
for the all-in hosting management. The combined cost of $0.055 per
KwH equates to a breakeven of approximately $5,050 per Bitcoin
resulting in Gross Profit Margins above 100% for each Bitcoin
earned from mining at a price of $10,000/BTC.
The Company anticipates the Miners will be placed into service
early in the 4th quarter of 2019. Once the S-9s are placed into
service, the Company’s total HashRate is expected to increase from
the current production level of 14 PH/s to approximately 98 PH/s,
which at today’s Bitcoin prices, would produce an annual revenue
run rate over $10 million. The improving market for Bitcoin has
been increasing the number of miners on the Blockchain network
which increases the overall HashRate and mining difficulty. This
increase in difficulty levels can reduce the Bitcoin’s rewarded to
miners, therefore the Company’s revenue run rate may be lower than
could be earned today.
Marathon Chairman and CEO, Merrick Okamoto stated, “This
transaction is a significant development for the Company. We were
very cautious about expanding our Bitcoin mining operations during
the Crypto-Winter but feel now is the time to expand our
operations. The mining landscape is littered with companies that
used debt to build their operations and have had difficulty
surviving. We believe this has created opportunities for our
company to acquire undervalued assets and expand our operations.
While there is no way to know what the future prices of Bitcoin
will be, our goal is to position the company to prosper if prices
remain stable or appreciate. The results would afford our
shareholders a NASDAQ listed company to invest in that may offer
them the ability to participate in any further appreciation of
Bitcoin prices, should that happen.”
The Company will continue to evaluate potential acquisitions in
the rapidly growing Blockchain space and believes this transaction
will strengthen the Company’s balance sheet, making us a better
candidate for future M&A transactions that would be less
dilutive to our shareholders.
Investor Notice
Investing in our securities involves a high degree of risk.
Before making an investment decision, you should carefully consider
the risks, uncertainties and forward-looking statements described
under "Risk Factors" in Item 1A of our most recent Annual Report on
Form 10-K for the fiscal year ended December 31, 2018. If any of
these risks were to occur, our business, financial condition or
results of operations would likely suffer. In that event, the value
of our securities could decline, and you could lose part or all of
your investment. The risks and uncertainties we describe are not
the only ones facing us. Additional risks not presently known to us
or that we currently deem immaterial may also impair our business
operations. In addition, our past financial performance may not be
a reliable indicator of future performance, and historical trends
should not be used to anticipate results in the future. See "Safe
Harbor" below.
Forward-Looking Statements
Statements made in this press release include forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934. Forward-looking statements can be identified by the use of
words such as “may,” “will,” “plan,” “should,” “expect,”
“anticipate,” “estimate,” “continue,” or comparable terminology.
Such forward-looking statements are inherently subject to certain
risks, trends and uncertainties, many of which the Company cannot
predict with accuracy and some of which the Company might not even
anticipate and involve factors that may cause actual results to
differ materially from those projected or suggested. Readers are
cautioned not to place undue reliance on these forward-looking
statements and are advised to consider the factors listed above
together with the additional factors under the heading “Risk
Factors” in the Company's Annual Reports on Form 10-K, as may be
supplemented or amended by the Company's Quarterly Reports on Form
10-Q. The Company assumes no obligation to update or supplement
forward-looking statements that become untrue because of subsequent
events, new information or otherwise.
CONTACT INFORMATION
Name: Jason Assad Phone: 678-570-6791 Email:
Jason@marathonpg.com
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