Bitcoin (BTC) mining company Marathon Digital (MARA) A contract was signed On Friday, it signed an agreement with Kenya's Ministry of Energy and Petroleum to develop the African country's energy infrastructure with an investment of more than $80 million.
The goal of the partnership is to “monetize untapped energy across Kenya and jointly develop technology projects,” Marathon CEO Fred Thiel said. Said.
The company said in a social media post that the investment will be directed towards green data centers. Marathon also noted in a press release that the capital will include foreign investment, without disclosing the source of the funds. “With foreign investment expected to exceed $80 million, the venture will bring economic benefits to the Kenyan economy and revenue to the local energy sector ecosystem,” the statement read.
The partnership comes as Marathon was in discussions with the country earlier this month to help manage its renewable energy operations and advise on its digital asset regulatory regime.
Renewable energy is Kenya's primary source of electricity, accounting for 80% of total electricity generation. 2022The company plans to increase its market share to 100% in 10 years. However, renewable energy sources such as solar and wind are intermittent, meaning they don't produce energy when most of the consumption occurs. Building renewable energy infrastructure is capital intensive and requires power management systems to properly store and distribute energy.
Under the agreement, Marathon and Kenyan policymakers will work together to “better understand how to optimize renewable energy projects that generate excess energy due to intermittency and seasonality,” according to a press release.
Marathon shares traded at around $21 on Friday, up 6% from the previous day's close, outperforming BTC's 1% gain over the past 24 hours.
