U.S.-based Bitcoin miner Marathon Digital (MARA) has joined forces with Zero Two, an Abu Dhabi-based digital assets infrastructure development firm supported by the city's sovereign wealth fund, to establish the first large-scale liquid cooled Bitcoin mining operation in the Middle East.
This partnership emerges as the White House is pushing for a proposed tax requiring U.S. crypto miners to pay an amount equivalent to 30% of their energy expenses. The newly-formed project, called Abu Dhabi Global Markets JV Entity (ADGM), initially plans to develop two mining sites with a combined capacity of 250 megawatts (MW) of mining power, as stated in a press release. These sites will utilize excess energy in Abu Dhabi, thereby enhancing the base load and sustainability of the Middle Eastern capital's power grid. Both sites have already secured the required mining equipment and infrastructure, with construction currently in progress.
Zero Two will hold an 80% stake in ADGM while Marathon will own 20%, with an initial capital contribution of around $406 million divided between the two partners accordingly.
While digital asset miners predominantly rely on air cooling technology for their mining computers, liquid immersion cooling provides significant advantages in high heat and humidity environments, particularly for miners operating on slim profit margins. The press release highlighted that Abu Dhabi's desert climate renders air-cooled digital asset mining unfeasible, and a liquid cooling pilot program initiated by Marathon and Zero Two demonstrated a substantial reduction in maintenance requirements for ASIC miners to effectively generate hash rate.
Marathon CEO Fred Thiel expressed enthusiasm about the collaboration with Zero Two, stating, "We look forward to working together to build the next-generation Bitcoin mining facilities in Abu Dhabi.”