Bitcoin mining firm Marathon Digital Holdings has announced a partnership with Kenya’s Ministry of Energy and Petroleum (MOEP) to develop several renewable energy projects. This collaboration aims to integrate bitcoin-based renewable energy initiatives across Kenya.
Marathon Digital and the MOEP will create a committee to steer the development and implementation of these energy-related projects. This committee will be responsible for overseeing the progress and ensuring that the initiatives align with the country’s energy goals. In a joint statement, both parties emphasized the significance of this agreement.
“This agreement with the Ministry of Energy and Petroleum is a pivotal moment for our business as it provides us with a clear framework to pursue opportunities across the Republic of Kenya,” said Marathon Digital CEO Fred Thiel.
The potential of bitcoin mining to serve as a renewable energy source has garnered interest, particularly in developing nations. Bitcoin mining can generate power consistently throughout the year, which is a significant advantage for regions with variable energy demands. However, critics argue that bitcoin mining is an energy-intensive process and question its viability as a renewable energy source.
Following the announcement, Marathon Digital’s stock price rose approximately 5%, trading around $21.10 per share. This partnership appears to be positively received by investors, reflecting confidence in the company’s strategic direction.
Earlier in May, Marathon Digital reported significant growth in its bitcoin mining operations, with 2,811 bitcoins mined in the first quarter of 2024. With bitcoin prices reaching all-time highs during this period, the company’s profits surged to $337.2 million, an increase of 184% compared to the same quarter in the previous year.