Here is the big public Bitcoin miner who has refused to succumb to the bears
In recent months, the market has seen the profitability of bitcoin miners plunge to new downturns. These miners, who are dependent on the BTC from their mining business, have found themselves in a tight spot as the price of bitcoin has suffered. The result of this has been that several miners have sold their BTC holdings to raise money to keep operations going. However, not all bitcoin miners have resulted in this.
Marathon Digital Shakes Off Bears
Marathon Digital is one of the most prominent names when it comes to public bitcoin mining. The company had been one of the winners of 2021 given how the stock price rose as popularity soared. And just like how the public miner had enjoyed the prey that followed the bitcoin beef market in 2021, it has also come under pressure during the bear market trend in 2022.
Related reading | The infamous cyclicity of Bitcoin mining: What causes this?
The company now sees that competitors are succumbing to market pressure and starting to sell their holdings. However, Marathon Digital has refused to give in to this sales trend. The public miner has refused to sell any bitcoin as shown in a recent report.
Marathon Digital has not sold any BTC since 2020 and had been one of the companies that saw the BTC production rate increase compared to 2021. The company now has a total of 10,055 BTC after producing 707 BTC through the second quarter of 2022. Accounts for an increase of 8% in BTC recovered in the same time period last year. In total, Marathon Digital’s BTC production is up 132% with 1,966 BTC produced so far this year.
BTC price continues to struggle | Source: BTCUSD on TradingView.com
Expansion of Bitcoin mining
Not only does Marathon Digital not sell its BTC, but it has also been one of the only companies that has been able to stick to the expansion plan through the downtrend. In its report, Marathon Digital highlights that the operation had been reduced to around 6,300 miners due to a storm in Hardin, MT. However, the company plans to add new miners to the fleet. It plans to expand this fleet to a total of 199,000 miners by the first half of 2023.
Related reading | Inverse Bitcoin ETF sees 300% increase in short-term interest rates
The company also continues to repay debt with $ 35 million of outstanding revolving credit line loans repaid during the month of June. Its outstanding balance is now $ 35 million. It also remains in a good cash flow position with reported $ 88.7 million in cash. The liquidity profile remains promising with $ 153.7 million in total liquidity in unlimited cash and available credit facilities.
On the back of this, some major bitcoin miners had dumped their bitcoin. One of these is Core Scientific. The public miner had sold 7,202 BTC in June, more than the total BTC production for the month.
Riot Blockchain and Cathedra Bitcoin have sold 250 and 235 BTC, respectively. While Argo Blockchain plans to sell some of its bitcoin in addition to raising debt to keep operations going.
Featured image from Forbes, charts from TradingView.com
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