Construction of a Bitcoin mining facility with a UAE company
NASDAQ-listed US crypto asset (virtual currency) mining company “Marathon Digital Holdings” (hereafter, Marathon) has partnered with digital asset infrastructure company Zero Two to launch large-scale Bitcoin (BTC) in Abu Dhabi, United Arab Emirates (UAE) on the 9th. ) announced that it will launch a mining facility.
It plans to build and operate two cryptocurrency mining facilities with a total capacity of 250 megawatts. The plan is to use Abu Dhabi’s surplus energy to improve the base load and sustainability of the local grid.
The business will be carried out by the newly established Abu Dhabi Global Markets JV Entity (ADGM).
ADGM will be owned 80% by Zero Two and 20% by Marathon. A total of approximately 55 billion yen (approximately 406 million dollars) is expected to be invested during the 2023 development period.
The bitcoins mined by ADGM will be distributed twice a month according to the respective investment ratios of Zero Two and Marathon. Based on the current schedule, both mining facilities are expected to be operational by the end of 2023, with a combined hashrate of around 7EH/s (exahash).
One exahash is the ability to perform 100 quadrillion hash calculations per second.
Marathon and Zero Two had a program to test mining methods in the desert climate of Abu Dhabi before launching this venture.
Abu Dhabi has developed a special immersion solution to cool its mining machines, as air-cooled crypto mining is not possible.
What is hash rate
Mining mining speed. In Japanese, it is expressed as “mining speed”. The unit is “hash/s”. “s” stands for “second” and represents “how many calculations can be done per second”. It is used as an index to show the processing power of mining equipment and how fast cryptocurrency mining is done.
Web3 company Zero Two in Abu Dhabi
Zero Two, a company working on Web3 and digital asset infrastructure, launched earlier this year. We will engage in various businesses such as the development of electric power infrastructure, procurement of the latest generation technology, construction and operation of data centers, and provision of digital asset management services.
In particular, promoting the stability of Abu Dhabi’s power grid is a key goal. It plans to increase the flexibility of the local power grid by operating a state-of-the-art data center on site using surplus electricity during periods of low demand.
We will also work on carbon reduction targets in the United Arab Emirates (UAE) and transition to a decarbonized economy.
Ahmed Al Hameli, CEO of Zero Two, commented, “Marathon and the company will work together to support Abu Dhabi’s power grid and build a world-class cryptocurrency infrastructure.”
Hash rate rising
In April, Marathon reported on bitcoin production volume for the first quarter of 2023 (1Q: January to March).
The hash rate increased by 64% in 1Q and reached 11.5 EH/s as of March 31st. The goal is to increase it to 23 EH/s by the middle of this year.
Due to the improvement of hash rate, bitcoin production in 1Q increased by 41% from the previous quarter to 2,195 bitcoins (equivalent to market value of 8.2 billion yen).