Marathon Digital Holdings Announces Bitcoin Production and Mining Updates for April 2023

• Increased operational hash rate 22% to 14 EH/s and installed hash rate 16% to 17.9 EH/si April 2023

• Produced 702 BTC in April 2023 and 2,896 BTC year-to-date

• Reported unrestricted cash and cash equivalents of $123.5 million, increasing unrestricted Bitcoin holdings to 11,568 BTC (approx. $319.2 million) as of April 30, 2023

FORT LAUDERDALE, Fla., May 02, 2023 (GLOBE NEWSWIRE) — Marathon Digital Holdings, Inc. (NASDAQ:MARA) (“Marathon” or “Company”)a leader in supporting and securing the Bitcoin ecosystem, today published unaudited bitcoin (“BTC”) production and mining installation updates for April 2023.

Management commentary
“In April, we increased our operational hash rate to 14.0 exahashes, reaching 61% of our 23 exahashes target, and we increased our installed hash rate to 17.9 exahashes, reaching 78% of the same target, ” said Fred Thiel Marathon’s Chairman and CEO. . “We produced 702 bitcoin in April, which is a 134% increase year-over-year, but a decrease from the previous month due to upward adjustments in network difficulty and to a lesser extent throttling activity, April had one less day than March, and the impact of the ‘luck factor’ (see reference). In addition to increasing our hashrate, we also saw our first domestic immersion mining deployment come online in Jamestown, ND. This immersion deployment is representative of our broader strategy to leverage technological innovations for to optimize the performance of our miners and improve the efficiency of our operations With 17.9 of our targeted 23 exahashes already installed and our operational hash rate consistently increasing, we remain confident that we are on track to achieve our primary goal of 23 exahashes near mid-2023. We look forward to continuing to establish Marathon as one of the largest and most energy efficient Bitcoin miners globally.”

Operational highlights and updates

Figure 1: Operational highlights

The story continues

In April, approximately 10,600 of Marathon’s Bitcoin miners (about 1.6 EH/s) were newly activated at Applied Digital’s facility in North Dakota. About 10,400 S19 XPs (about 1.5 EH/s) were recently activated in Ellendale, ND. The remaining units were activated at the facility in Jamestown, ND, where Marathon began its first-ever domestic submersible mining deployment.

As a result, the company’s operating fleet increased to approximately 122,900 Bitcoin miners, theoretically capable of producing approximately 14.0 EH/s, according to manufacturer specifications, as of May 1, 2023.

Once all of Marathon’s previously purchased miners are installed, approximately 66% of the company’s hash rate is expected to be generated by S19 XPs, which are approximately 30% more energy efficient than the previous generation of mining rigs.

Financial highlights and updates

Figure 3: Financial highlights

As of May 1, Marathon has a total of 11,568 BTC, all of which are unlimited. The company chose to sell 600 BTC during the month of April and intends to sell a portion of its bitcoin holdings in future periods to support monthly operations, manage treasury and for general corporate purposes. The company ended the month with $123.5 million in unrestricted cash and cash equivalents on its balance sheet.

Investor announcement
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 Item 1A of our most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC on March 16 2022. If any of these risks were to occur, our business, financial condition or results of operations would likely suffer. If so, the value of our securities may decline 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 to be immaterial could also impair our business operations. In addition, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to predict future performance. Future changes in network-wide mining difficulty or Bitcoin hashrate could also materially affect the future performance of Marathon’s bitcoin production. In addition, all discussions of financial calculations assume mining difficulty rates as of May 2023. See “Forward-Looking Statements” below.

Forward-looking 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 by the use of words such as “may,” “will,” “plan “, “should”, “expect”, “anticipate”, “estimate”, “continue” or similar terminology. Such forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company may not even anticipate and which involve factors that could cause actual results to differ materially from those projected or proposed. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together 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 undertakes no obligation to update or supplement forward-looking statements that become untrue as a result of subsequent events, new information or otherwise.

Definition of luck
“The problem with crypto mining is probabilistic in nature. Imagine that each miner gets a lottery ticket for a certain amount of hashing power they provide. For illustrative purposes, imagine that you provide 1 EH/s of hashing power and the total hashing power in the network was 100 EH/s , then you will receive 1 out of 100 total lottery tickets. The probability of you winning the lottery (finding the block reward) will be 1%. So for every 100 blocks found you should statistically find 1 of them.

“Now imagine you found 2 of the 100 blocks, this means you found a block earlier than you statistically should. You are lucky! Now imagine you found 0 out of 100. This would make you unlucky. In the long term you should statistically find on average 1 in 100 (1%) blocks, but there is short term variation.”

Source: Luxor

About Marathon Digital Holdings
Marathon is a digital asset technology company focused on supporting and securing the Bitcoin ecosystem. The company is currently becoming one of the largest and most sustainably operated Bitcoin mining operations in North America.

Marathon Digital Holdings Company Contact:
Phone: 800-804-1690
Email: [email protected]

Marathon Digital Holdings Media Contact:
Email: [email protected]