Marathon Digital Holdings, Inc.
(NASDAQ:MARA) ("Marathon"
or "Company"), one of the largest enterprise Bitcoin
self-mining companies in North America, today published unaudited
bitcoin (“BTC”) production and miner installation updates for
November 2021.
Historical and Potential Hash Rate Growth Based on
Current Shipment Schedules of Previously Purchased Miners (Subject
to Change)
Corporate Highlights as of December 1, 2021
- Cash on hand was approximately $623.7 million and total
liquidity, defined as cash and bitcoin holdings, was approximately
$1.1 billion
- Received approximately 15,520 top-tier ASIC miners from Bitmain
during the month of November and 56,826 miners year to date with an
additional 8,477 miners currently in transit
- Fully completed miner installations at the Company’s facility
in Hardin, MT, as well as scheduled upgrades and maintenance to the
power generating facility in Hardin, MT
- Secured hosting for all previous purchased bitcoin miners,
predominantly at wind and solar farms operated by one of the
largest renewable energy power providers in North America
- Began installing miners at various facilities operated by
Compute North
- Following successful system upgrades to the power plant in
Hardin, MT, produced approximately 34 bitcoin on December 1, 2021,
as the power plant and Marathon’s miners in Hardin began operating
near full capacity
- Maintenance and upgrades to the power generating facility in
Hardin, MT negatively impacted bitcoin production for a portion of
November, resulting in 196 self-mined bitcoin during November
2021
- Increased total bitcoin holdings to approximately 7,649.1 with
a fair market value of approximately $437.4 million
- Existing mining fleet consists of 31,000 active miners
producing approximately 3.2 EH/s
Power Generating Station Upgrades in Hardin,
MTAs previously disclosed in the Company’s third quarter
2021 10-Q, system upgrades were performed as scheduled on the power
generating station in Hardin, MT during November. These upgrades,
combined with additional maintenance to improve the cleanliness and
efficacy of the power generating station and the ongoing challenges
reported in prior months, caused Marathon’s bitcoin mining
operations to operate at substantially reduced capacity in
November, negatively impacting the Company’s bitcoin production.
The upgrades performed are expected to improve the power generating
station’s efficiency, increase safety, mitigate the potential for
unexpected downtime in the future, and ultimately improve the
Company’s ability to effectively mine bitcoin. With many of these
issues remediated, the Hardin power generating station, and
therefore Marathon’s mining fleet in Hardin, were operating near
full capacity as of December 1, 2021, which enabled the company to
produce 34 bitcoin on the first day of December.
Bitcoin Production UpdateAs of December 1,
2021, Marathon’s mining fleet has produced approximately 2,712.3
self-mined bitcoin during 2021. By month, the Company’s bitcoin
production was as follows:
*Note: Upgrades and maintenance to the power generating station
in Hardin, MT caused Marathon’s bitcoin mining operations in
Hardin, MT to operate at substantially reduced capacity in November
2021, negatively impacting the Company’s bitcoin production for the
month.
Total Network Hash Rate Source:
https://www.blockchain.com/charts/hash-rate
The Company last sold bitcoin on October 21, 2020, and since
then, has been accumulating or “hodling” all bitcoin generated. As
a result, Marathon currently holds approximately 7,649.1 BTC,
including the 4,812.66 BTC the Company purchased in January 2021
for an average price of $31,168 per BTC. On December 1, 2021, the
fair market value of one bitcoin was approximately $57,180,
implying that the approximate fair market value of Marathon’s
current bitcoin holdings is approximately $437.4 million.
Miner Installations and Hash Rate GrowthAs of
December 1, 2021, Marathon has fully completed deploying miners at
its facility in Hardin, MT and is now deploying miners at existing
facilities operated by Compute North. After expanding its agreement
with Compute North, Marathon has now secured hosting for all of its
previously purchased bitcoin miners. Marathon’s remaining miners
will predominantly be deployed “behind the meter” with Compute
North at wind and solar farms operated by one of the largest
renewable energy power providers in North America. Compute North’s
new facilities, including a 280-megawatt (MW) site in west Texas,
are currently under construction. Based on current construction
schedules, Marathon expects to begin deploying miners at Compute
North’s new facilities beginning in the first quarter of 2022.
In October, the Company began chartering planes to expedite
shipments of miners and to mitigate the impact of global logistics
issues on its growth trajectory. In November, the Company continued
to charter planes, reducing the average time it takes to ship
miners from approximately 21 days with commercial cargo to five
days with chartered flights. As a result, Marathon received 15,520
miners in the month of November, and the Company has received
approximately 56,826 miners year to date. While deliveries of
miners may continue to fluctuate in the near-term, based on current
estimates, the Company still anticipates all previously purchased
miners to be delivered by mid-2022. Once all miners are fully
installed, the Company’s mining fleet is expected to consist of
approximately 133,000 miners, generating approximately 13.3
EH/s.
Management Commentary“In November, we completed
the buildout of our mining facility in Hardin, MT, we began
deploying miners with Compute North, and we made substantial
progress improving our ability to effectively scale our operations
in the coming months,” said Fred Thiel, Marathon’s CEO. “After
expanding our agreement with Compute North, we have secured
reliable hosting with renewable power, at industry low rates for
the remainder of our previously purchased miners. By continuing to
charter planes, we have reduced the average time to ship miners
from 21 days with commercial cargo to only five. We now have enough
miners on the ground in the United States to utilize Compute
North’s new capacity as it becomes available in the coming months.
And after closing an oversubscribed convertible note offering, we
increased our total liquidity to $1.1 billion, which provides us
with optionality to improve our efficiency and further scale our
operations.
“During the month, we performed several important upgrades to
the power plant in Hardin, MT, including cleaning out nearly 400
tons of particulate matter that had been negatively impacting the
plant’s ability to consistently generate power. While these
upgrades caused our miners in Hardin to operate below capacity in
November, which negatively impacted our bitcoin production for the
month, we believe they were necessary in the near-term and will be
beneficial in the long-run. With the plant and approximately 29,000
miners at Hardin back online, we produced approximately 34 bitcoin
on December 1st alone.
“Today, Marathon is well-capitalized, our deployments are
commencing with Compute North, and we have ample opportunities to
continue expanding our mining operations with renewable power in
the United States. As a result, we believe we are well positioned
to reach 13.3 EH/s by mid 2022 and to remain agile and
opportunistic as our industry evolves in the coming quarters.”
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 Item 1A of our most recent Annual Report on Form 10-K
for the fiscal year ended December 31, 2020. If any of these
risks were to occur, our business, financial condition or results
of operations would likely suffer. In that event, the value of our
securities could decline, and you could lose part or all of
your investment. The risks and uncertainties we describe are not
the only ones facing us. Additional risks not presently known to us
or that we currently deem immaterial may 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 anticipate results in the future. Future
changes in the network-wide mining difficulty rate or
Bitcoin hash rate may also materially affect the future
performance of Marathon's production of Bitcoin. Additionally, all
discussions of financial metrics assume mining difficulty rates as
of December 2021. The total network’s hash rate data is calculated
from a third-party source, which is available here:
https://www.blockchain.com/charts/hash-rate. Data from third-party
sources has not been independently verified. See "Safe Harbor"
below.
Forward-Looking Statements Statements made
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 comparable 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 might not even
anticipate and involve factors that may cause actual results to
differ materially from those projected or suggested. 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, as 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 because of subsequent
events, new information or otherwise.
About Marathon Digital Holdings Marathon
is a digital asset technology company that mines cryptocurrencies
with a focus on the blockchain ecosystem and the generation of
digital assets.
Marathon Digital
Holdings Company Contact: Charlie
SchumacherTelephone:
800-804-1690Email: charlie@marathondh.com
Two figures accompanying this announcement are
available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/14c1948c-d5f2-4a09-9331-0f66d3390310
https://www.globenewswire.com/NewsRoom/AttachmentNg/efd1b391-cd0a-47b4-9576-da6c3147097f
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