Marathon Digital, a bitcoin mining company, has teamed up with Zero Two, which is supported by Abu Dhabi’s sovereign wealth fund, to build the Middle East’s first large-scale immersion Bitcoin mining operation.
Meanwhile, in the U.S., the White House has proposed a tax on crypto miners that would require them to pay 30% of their energy costs.
The new venture, called Abu Dhabi Global Markets JV Entity (ADGM), will establish two mining sites with a total capacity of 250 megawatts of mining power. The new entity has been established by Marathon and Zero Two to operate the two crypto-mining sites.
Construction has already begun, and Zero Two will own 80% of ADGM, with Marathon owning 20% and an initial capital contribution of approximately $406 million to be divided according to these percentages.
The mining operation will use excess energy from Abu Dhabi to power the sites and will purchase clean energy certificates to offset any non-sustainable energy use.
The companies tested a pilot program to explore immersion mining’s feasibility in hot climates, and they were able to develop an immersion solution that worked. They have already ordered the necessary equipment and infrastructure for the mining sites.
It is worth noting that the first site is set to be situated in Masdar City and will provide energy up to 200 MW, while the second site will be located in Mina Zayed and offer energy up to 50 MW. The two sites are expected to be operational by the end of 2023, with a total hashrate of 7 EH/s.
Marathon is one of the most prominent crypto-mining firms in the United States, with 702 BTC mined in April and a total of 122,900 devices in operation. Zero Two is a blockchain infrastructure development firm located in Abu Dhabi, registered as FS Innovation.