In a setback for Marathon, one of the largest public bitcoin mining firms, its colocation host “Applied Digital” has been grappling with a complete power outage at one of its key sites since January 19, 2024.
This disruption significantly impacted Marathon, which had a substantial 7.8 EH/s of its hashrate installed at Applied Digital’s Ellendale data center, according to TheMinerMag.
Applied Digital disclosed in a recent SEC filing that the Ellendale facility suffered a complete power outage starting January 19, due to the electricity provider undertaking necessary upgrades to enhance the electrical supply’s stability.
Despite announcing a $20 million loan deal earlier in the week, Applied Digital had not previously mentioned this critical outage.
The Ellendale site, an 180 MW facility located in North Dakota, plays a crucial role in Marathon’s operations, hosting 57% of Marathon’s total hashrate across all Applied Digital sites.
The power outage at Ellendale corresponds with reported downtimes experienced by Marathon’s MARA Pool in late January, indicating the significant impact of this issue on Marathon’s bitcoin mining activities.
Applied Digital anticipates that the Ellendale facility will resume operations within February.
However, the company also warns that the outage will have a “material impact” on its revenue for the quarter ending February 29.
This event underscores the vulnerability of bitcoin mining operations to infrastructure challenges and the critical importance of reliable power supply for uninterrupted mining activities.
The hosting segment, crucial for Applied Digital’s revenue, which contributed 80% of the company’s $42.2 million revenue for the quarter ending November 30, is now under strain.
The revenue boost previously enjoyed from the Ellendale facility, attributed to a full quarter of operational revenue, faces a downturn due to this unexpected outage.