Marathon Digital Holdings Announces November 2022 Bitcoin Production and Mining Updates
– Produced 472 BTC in November 2022 and 1,087 BTC quarter-to-date
– Increased unlimited cash to $61.7 million and unlimited Bitcoin holdings to 4,200 BTC as of November 30
– Started Pilot Immersion Deployment and installed approx. 14,000 S19 XPs in Texas
LAS VEGAS, Dec. 6, 2022 (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 November 2022.
Management commentary
“In November, we strengthened our liquidity position, produced 472 bitcoin and began improving the efficiency of our mining operations with new technologies,” said Fred Thiel, Marathon’s chairman and CEO. “Given the current macro environment, we took proactive steps to reduce our revolving loans from $50 million as of November 9 to $30 million as of November 30. The combination of this debt repayment and our monthly production increased our unlimited bitcoin holdings from 1,950 BTC as of 9 .November to 4,200 BTC as of November 30, and we ended the month with $61.7 million in cash.
“Our production in November was negatively impacted by curtailment at the King Mountain facility in Texas. This increased curtailment was caused by spot market energy prices driven by weather combined with lower bitcoin prices. We are working to optimize curtailment strategies and site operations with the new the operator and expects King Mountain’s productivity to improve over the coming months.
“While Applied Digital awaits regulatory approval to energize their facility in Garden City, Texas, facility construction and mining server installations remain ongoing according to the most publicly available information. At the same time, Marathon continues to execute its strategy to improve where efficiently we convert power to value We recently launched an immersion pilot program and our first 14,000 S19 XPs, which are 30% more energy efficient than the previous generation of servers, were successfully installed at Applied Digital’s facility in Garden City, Texas during of November.
“We remain confident that Marathon is well positioned to continue to scale into one of the largest and most energy efficient operators in the industry.”
Recent Highlights
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Produced 472 BTC in November 2022 and 1,087 BTC per quarter to date as of December 1
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As of December 1, the operational mining fleet consisted of approximately 69,000 active miners, capable of producing approximately 7.0 EH/s
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14,000 S19 XPs were installed in Garden City, TX in November and are currently awaiting energization
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Depending on Applied Digital’s energization timeline, the company expects to have between 7.0 EH/s and 9.0 EH/s online by December 31, 2022
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Year to date through November 30, 2022, produced 3,669 BTC, a 35% increase over the same time period last year
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Estimated that approximately $22 million of the remaining $42 million in deposits with Compute North is recoverable, while the recoverability of the remainder remains unknown subject to bankruptcy proceedings
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Reduced revolving loans from $50 million as of November 9 to $30 million as of November 30
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Unlimited bitcoin holdings as of November 30, 2022 were approximately 4,200 BTC with a market cap of approximately $72.1 million
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Total bitcoin holdings increased to 11,757 BTC as of November 30, 2022
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Unrestricted cash balance was approximately $61.7 million as of November 30, 2022
Compute North Deposits Update
As previously disclosed, the company had paid about $50 million in operating deposits for Compute North units. To date, the company has written off approx. $8 million of these deposits. In November, the company determined that approximately $22 million of the remaining $42 million was likely to be fully recoverable as deposits. The recoverability of the remaining $20 million in deposits and other amounts previously written down remains subject to the bankruptcy proceedings, and the company continues to work with various involved parties to determine their ultimate recoverability.
Updates for mining and installations
According to the latest information made publicly available, construction of facilities and installation of miners at Applied Digital’s data center sites remains ongoing as Applied Digital awaits regulatory approval to energize its newest facilities.
In November, Marathon started an immersion-cooled pilot project. Immersion is the process of immersing mining servers in non-conductive liquid and can have several advantages compared to traditional air-cooled solutions, including reduced maintenance and downtime, the potential to “overclock” a mining server, etc. Based on the outcome of this first project, Marathon may allocate additional resources to immersion cooling.
As of November 30, approximately 14,000 of the company’s previously purchased S19 XPs were awaiting power supply after being installed in Texas. 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 servers.
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, 2021, filed with the SEC on March 10, 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 November 2022. 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 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.
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 while still being easily accessible.
Marathon Digital Holdings Company Consult:
Phone: 800-804-1690
Email: [email protected]
