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 miner installation updates for July 2023.
Management Commentary“We
produced 1,176 bitcoin in July, which is a 20% increase from last
month and a 1,527% increase from July of last year,” said Fred
Thiel, Marathon’s chairman and CEO. “The increases in our bitcoin
production were due to increased operational hash rate and improved
uptime. With these improvements, we also mined a record number of
blocks this month. We mined 179 blocks in July, whereas we mined
144 blocks last month and 171 blocks in May when high transaction
fees boosted our reported bitcoin production.
“In July, we increased our operational hash rate
6% month-over-month to 18.8 exahashes, and we increased our
installed hash rate 5% month-over-month to 22.8 exahashes. The
majority of the sequential increase is due to the completion of the
build-out of the facility in Ellendale, North Dakota. With all six
buildings now fully operational, Ellendale adds a total of 7.6
exahashes to our energized hash rate. The facility in Garden City,
Texas is expected to come online next. Tie in work has been
completed at this site, and we believe energization is likely
imminent.
“We also saw continued progress at our joint
venture in Abu Dhabi which began hashing in early July and produced
16.8 bitcoin in its first month. Given our 20% ownership stake, our
share was 3.4 bitcoin for the month of July. As of July 31, the
JV’s operational hash rate grew to 1.2 exahashes, and we continue
to expect the project’s full 7.0 exahashes to be online before
year-end 2023.”
Operational Highlights and
Updates
Figure 1: Operational Highlights
Metric |
7/31/2023 |
7/31/2022 |
% Δ |
|
7/31/2023 |
6/30/2023 |
% Δ |
BTC
Produced |
1,176 |
72.3 |
1527% |
|
1,176 |
979 |
20% |
Avg.
BTC Produced per Day |
37.9 |
2.3 |
1527% |
|
37.9 |
32.6 |
16% |
Operational/Energized Hash Rate
(EH/s)1 |
18.8 |
0.6 |
2838% |
|
18.8 |
17.7 |
6% |
Average Operational Hash Rate (EH/s)2 |
14.0 |
NA |
|
|
14.0 |
13.0 |
8% |
Installed Hash Rate (EH/s)3 |
22.8 |
0.6 |
3463% |
|
22.8 |
21.8 |
5% |
1. Defined as the amount of hash rate that could theoretically be
generated if all miners that have been energized are currently in
operation (includes miners that are temporarily offline for
maintenance or similar reasons). Hash rates are estimates based on
the manufacturers' specifications. All figures are rounded. |
2. Defined as the average hash rate that was actually generated
during the month from all operational miners. All figures are
estimates and are rounded. |
3. Defined as the sum of energized hash rate (see above) and hash
rate that has been installed but is not yet energized (e.g., miners
are in containers but not energized). Hash rates are estimates
based on the manufacturers' specifications. All figures are
rounded. |
|
In July, approximately 6,100 of Marathon’s
Bitcoin miners (c. 0.8 EH/s) were energized at Applied Digital’s
facilities in Ellendale, North Dakota. This energization increased
the Company’s operating fleet to approximately 156,600 Bitcoin
miners, theoretically capable of producing approximately 18.8 EH/s,
according to the manufacturer’s specifications, as of August 1,
2023.
With the majority of Marathon’s fleet now
powered by S19 XPs, the Company’s average fleet efficiency, based
on manufacturers’ specifications, improved from 27.3 J/TH (joules
per terahash) last month to 25.3 J/TH as of August 1, 2023. Once
fully deployed, Marathon’s fleet efficiency is expected to be
approximately 24.2 J/TH, according to the manufacturers’
specifications.
Financial Highlights and
Updates
Figure 2: Financial Highlights
|
Year-Over-Year Comparison |
|
Prior Month Comparison |
Metric |
7/31/2023 |
7/31/2022 |
% Δ |
|
7/31/2023 |
6/30/2023 |
% Δ |
Total Cash, Cash Equivalents, & Restricted Cash ($, in
millions) |
129.4 |
120.7 |
7% |
|
129.4 |
113.7 |
14% |
Unrestricted Cash |
115.1 |
117.5 |
-2% |
|
115.1 |
113.7 |
1% |
Restricted Cash |
14.3 |
3.2 |
347% |
|
14.3 |
0.0 |
NA |
Total BTC Holdings (in whole numbers) |
12,964 |
10,127 |
28% |
|
12,964 |
12,538 |
3% |
Unrestricted BTC Holdings |
12,964 |
6,895 |
88% |
|
12,964 |
12,538 |
3% |
Restricted BTC Holdings |
0 |
3,232 |
-100% |
|
0 |
0 |
NA |
|
As of August 1, Marathon holds a total of 12,964
BTC, all of which are unrestricted. The Company opted to sell 750
BTC during the month of July and intends to sell a portion of its
bitcoin holdings in future periods to support monthly operations,
manage its treasury, and for general corporate purposes. The
Company ended the month with $129.4 million in cash and cash
equivalents on its balance sheet of which $115.1 million was
unrestricted. The combined balance of unrestricted cash and cash
equivalents and bitcoin increased from $278.2 million to $494.0
million at July 31, 2023 when compared to the same period last
year.
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, 2022, filed with the
SEC on March 16, 2023. 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 July 2023.
See "Forward-Looking Statements" 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 focuses on supporting and securing the Bitcoin
ecosystem. The Company is currently in the process of becoming one
of the largest and most sustainably powered Bitcoin mining
operations in North America.
For more information, visit www.mara.com, or
follow us on:
Twitter: @MarathonDHLinkedIn:
www.linkedin.com/company/marathon-digital-holdingsFacebook:
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@marathondigitalholdings
Marathon Digital
Holdings Company Contact: Telephone:
800-804-1690Email: ir@mara.com
Marathon Digital Holdings Media
Contact:Email: marathon@wachsman.com
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