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Marathon Digital, one of the largest mining companies in the Bitcoin ecosystem, has released its financial results corresponding to the second quarter of the year. The company revealed that even after increasing production by 8% compared to Q2 2021, it recorded a $127.6 million write-down on bitcoin holdings due to the fall in bitcoin prices during this period.
Marathon Digital, one of the largest public Bitcoin mining companies, has released its Q2 2022 financial results. In its recent earnings call, the company posted negative results, reporting a $127.6 million impairment due to the drop in bitcoin prices. However, the company produced 707 bitcoins during the period, a figure that is 8% higher than what the company produced in Q2 last year.
However, these 707 bitcoins produced represent a 44% drop compared to the 1,259 bitcoins produced by the company in the previous quarter. Marathon CEO Fred Thiel this fall attributed several energy issues that delayed the activation of miners at the Texas operation, and also weather issues that affected the power generation process at the Montana facility.
Even as the company reported a net loss of $191.6 million, Thiel was positive about the recovery of the company. In a statement he declared:
Given the groundwork we laid during the quarter and the progress we have made since then, we are optimistic that Marathon’s operational and financial positioning is improving.
The company had 10,055 bitcoin directly as of June 30.
The company, which had to deal with a number of problems last quarter, is working to improve the situation in the near future. Thiel noted that the energization issues in the Texas facility have already been addressed and that 40,000 miners out of the 68,000 that are in the facility have already been activated and are being energized, ready to produce bitcoin for the 3rd quarter, improving the capacity of the company.
Thiel also referred to the recent deal that Marathon entered into to increase its power capacity to 254 MW, which will be needed to reach its goal of having 23.3 EH/s (exahashes per second) of bitcoin mining capacity by 2023. The company is also considering and replace parts of the mining fleet to achieve better efficiency.
Marathon’s CEO ended on a positive note, saying:
Overall, this progress gives us added confidence that we are still on track to grow our position as a leader in supporting and securing the Bitcoin ecosystem.
What do you think of Marathon Digital’s Q2 2022 financial results? Tell us in the comments section below.
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