– The company produces 707 BTC in Q2 2022, up 8% year-over-year from Q2 2021
– The company now has 10,055 BTC directly after eliminating the investment fund structure
– Cash and cash equivalents were $ 88.7 million, and total available liquidity was $ 153.7 million at 30 June
LAS VEGAS, JULY 7, 2022 (GLOBE NEWSWIRE) – Marathon Digital Holdings, Inc. (NASDAQ:MARA) (“Marathon” or “Business”)a leader in the support and security of the Bitcoin ecosystem, today released unaudited bitcoin (“BTC”) production and mining installation updates for June 2022.
Management comment
“In the second quarter, we continued to work through several operational barriers as we proceeded to install miners in Texas in preparation for energization,” said Fred Thiel, Marathon’s chairman and CEO. “In April and May, our bitcoin production was affected by ongoing maintenance issues at the Hardin, MT power plant, which supplies power to our Hardin-based miners. On June 11, the situation was exacerbated by a severe storm that swept through the region, damaging the power plant’s cooling tower According to the latest reports, these miners, who represent over 75% of our active fleet, are largely unharmed by the storm. by bringing the power plant and the miners back online with reduced capacity.
“In Texas, despite several assurances that energy supply will occur in June, Compute North’s energy supplier is still awaiting confirmation from federal agencies of its tax exemption status based on agreements with Compute North. Meanwhile, the installations of our miners have gone according to plan. We now have 29,640 miners, representing approximately 2.9 eksahash per second, installed and ready for energy in Texas, and approximately 20,000 of these miners, representing an estimated 1.9 eksahash per second, are installed at Compute North’s first large plant It is our understanding that this entire first facility, which will house approximately 68,000 of our miners, is still nearing completion with all miners installed by the end of the third quarter of 2022. The remaining miners are scattered elsewhere.
“Despite today’s operational challenges, we are working to take advantage of hosting opportunities and are actively engaged with various hosting providers. Ultimately, we look forward to working through this friction in the short term and striving to consolidate Marathon’s position as a leader in our room. . “
Recent highlights:
- The company produced 707 self-extracted bitcoin during the 2nd quarter of 2022, an increase of 8% from 654 bitcoin extracted in the 2nd quarter of 2021. Bitcoin production in the 2nd quarter of 2022 was significantly affected by:
- Delayed power supply in Texas
- Maintenance of the power generation plant in Hardin, MT during April and May
- A powerful storm that swept through the Hardin region on June 11 damaged the power plant that supplies Marathon miners in the region with power and caused Marathon miners in Montana to go offline.
- Due to the storm, the current mining fleet was reduced to approximately 6,300 active miners producing approximately 0.7 EH / s and BTC production was significantly reduced in June with 140 self-extracted bitcoin produced during the month.
- So far this year up to and including June 30, 2022, the company produced 1,966 bitcoin, an increase of 132% compared to the same time period the year before.
- The total number of miners installed and waiting for energy supply at Texas plants increased to 29,640 miners (approx. 2.9 EH / s).
- The company benefited from a downward adjustment of the market price for the 13,000 S19 XPs to be sent in July and expects to see continued benefits from price adjustments as the remaining XPs will be sent in the time frame for August – December.
- The company wound up its investment in NYDIG Digital Assets Fund III, LP (the “investment fund”) and transferred approx. 4,769 BTC from the company’s investment fund to the company’s BTC wallet.
- Total bitcoin holdings are 10,055 BTC with a fair market value of $ 198.9 million. Given the elimination of the investment fund, this whole bitcoin is kept directly as digital currencies on the balance sheet.
- The company repaid $ 35 million of outstanding revolving credit line loans during June 2022, reducing its outstanding balance to $ 35 million.
- Cash on hand was approximately $ 88.7 million and total liquidity, defined as unlimited cash and available credit facilities, was approximately $ 153.7 million.
Update to operations in Hardin, MT
As discussed in a press release published June 28, 2022, Marathon’s miners in Hardin, MT, have been offline since a severe storm swept through the region on June 11, damaging the power plant that supplies power to the company’s miners. While recent reports indicate that the majority of the company’s miners were unharmed, tests are still being conducted and data are still being aggregated. The ground crew at Hardin continue to make progress as they work to bring the power plant and Marathon miners back online with reduced capacity. The company continues to investigate the possibility of speeding up its departure from this facility ahead of original schedules.
Miner Energization and installations
Marathon’s expectations for energy for Texas miners are based on the latest available information provided to the company by host provider Compute North. Marathon was originally informed by Compute North that the energy supply of the company’s miners in Texas would start on April 17, 2022. Marathon was then informed that energy supply was moved to May 2022. From June 8, 2022, Marathon was informed that energy supply would probably take place during the month of June 2022. As of July 6, 2022, the energy supplier for the Compute North site in West Texas has not yet supplied energy to Marathon’s installed miners. The delays in the energy supply are a result of Compute North’s energy supplier waiting for confirmation from federal agencies on its exemption status for tax purposes based on the agreements with Compute North. This case is ongoing. Marathon continues to work with its host provider to gain further insight into the process and to accelerate energy supply if possible.
Compute North’s West Texas facility consists of four sections. These sections are being built in phases, and together they represent 280 MW of capacity for bitcoin mining. The first part is complete and is currently waiting for energy. The construction of the remaining sections will continue according to plan with the entire 280 MW plant, which is expected to be built by the end of the third quarter of 2022. When completed, this plant will house approx. 68,000 of Marathon’s miners, representing 6.8 EH / s. Based on current schedules, Compute North has informed Marathon that 21,000 miners are expected to be installed at this facility in July with a further 28,000 miners expected to be installed in August.
Given the current construction and installation plans combined with the company’s pipeline of potential new hosting and power arrangements, Marathon continues to expect that all 199,000 miners, producing approx. 23.3 EH / s, will be installed in early 2023. In addition, the company continues to expect its mining operations to be 100% carbon neutral by the end of 2022.
Bitcoin production update
Until June 30, 2022, Marathon’s mining fleet has produced 1,966 bitcoin, an increase of 132% compared to the same time period the year before. After a month, the company’s bitcoin production was as follows:
* Note: Upgrades and maintenance of the power generation station in Hardin, MT, led to Marathon’s bitcoin mining in Hardin, MT, operating at a significantly reduced capacity in November 2021, negatively affecting the company’s bitcoin production for the month. In April and May 2022, the company’s bitcoin production was similarly affected by maintenance at the power generation station in Hardin, MT. In June 2022, a severe storm damaged the Hardin, MT power plant that supplies Marathon miners with power, causing Marathon miners in the region to go offline.
Source for total network hash frequency:
As of June 30, 2022, Marathon had approximately 10,055 BTC, with a market capitalization of approximately $ 198.9 million. The company has not sold any bitcoin since October 2020. However, as production increases in the near future, Marathon can sell part of its monthly bitcoin production as needed to finance monthly operating costs.
Investor notice
Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described under “Risk Factors” in Section 1A of our most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the SEC March 10, 2022 and quarterly report on Form 10-Q for the accounting quarter ended March 31, 2022, filed with the SEC on May 5, 2022. Should any of these risks occur, our business, financial condition or results of operations are likely to suffer. In that case, the value of our securities may decrease and you may lose part or all of your investment. The risks and uncertainties we describe are not the only ones we face. Additional risks that are not currently known to us or that we currently consider immaterial may also impair our business operations. In addition, our past financial results may not be a reliable indicator of future performance, and historical trends should not be used to predict future results. Future changes in network-wide mining difficulty or Bitcoin hashrate may also significantly affect the future performance of Marathon’s bitcoin production. In addition, all discussions on economic calculations assume mining difficulty rates from and including July 2022. The total network hash rate data is calculated from a third-party source, which is available here:. Data from third-party sources are not independently verified. See “forward-looking statements” below.
Future-oriented statements
Statements in this press release include forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified using words such as “can”, “will”, “plan” »,« Should »,« expect »,« predict »,« estimate »,« continue »or similar terminology. Such forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which the company cannot accurately predict, and some that the company may not even expect and involve factors that may cause actual results to differ materially from those estimated or proposed. Readers are cautioned not to rely on these forward-looking statements and are advised to consider the factors listed above along with the additional factors under the heading “Risk Factors” in the Company’s annual reports on Form 10-K, which may be supplemented. or amended by the company’s quarterly reports on Form 10-Q. The company assumes no obligation to update or supplement forward-looking statements that become untrue due to subsequent events, new information or otherwise.
About Marathon Digital Holdings
Marathon is a technology company that focuses on supporting and securing the Bitcoin ecosystem. The company is currently becoming one of the largest and most sustainably operated Bitcoin mines in North America, while still being easily accessible.
Marathon Digital Holdings Company Contact:
Phone: 800-804-1690
Email: [email protected]
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