According to CoinDesk, Bitcoin mining firm Marathon Digital has entered into a partnership with Kenya's Ministry of Energy and Petroleum. The deal, announced on Friday, involves an investment of over $80 million to enhance the African nation's energy infrastructure. The primary objective of this collaboration is to monetize Kenya's underutilized energy and jointly develop technology projects, as stated by Marathon's CEO, Fred Thiel.
The investment will be directed towards the development of green data centers, according to a social media post by the company. A press release from Marathon also indicated that the capital would include foreign investments, although the sources of these funds were not specified. The statement further highlighted that the venture, with projected foreign investments exceeding $80 million, is set to deliver economic benefits to the Kenyan economy and generate revenue for the local energy sector ecosystem.
This partnership follows Marathon's earlier discussions with the Kenyan government this month, where the company offered to assist in managing the country's renewable energy operations and provide advice on its digital asset regulatory regime. Renewable energy is the primary source of power in Kenya, accounting for 80% of all electricity generation in 2022. The country plans to increase this share to 100% by the end of the decade. However, renewable energy sources like solar and wind are intermittent, leading to challenges in energy production during peak consumption times. Building infrastructure for renewable energy is capital-intensive and necessitates a power management system for proper energy storage and distribution.
As part of the agreement, Marathon and Kenyan policymakers will work together to optimize renewable energy projects that produce surplus energy due to intermittency and seasonal variations. Following the announcement of the partnership, Marathon's shares traded 6% higher at around $21 on Friday, outperforming Bitcoin's 1% advance over the past 24 hours.