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 August 2023.
Management Commentary
“We produced 1,072 bitcoin in August, which is a
9% decrease from last month and a more than fivefold increase from
August of last year,” said Fred Thiel, Marathon’s chairman and CEO.
“The decrease in bitcoin production from July was largely due to
increased curtailment activity in Texas due to record high
temperatures. These temporary shutdowns more than offset the
progress we have made to increase our operational hash rate and
optimize our operations.
“In August, we increased our U.S. operational
hash rate 2% month-over-month to 19.1 exahashes, and we increased
our installed hash rate 1% month-over-month to 23.1 exahashes. The
sequential increase is primarily due to swapping BITMAIN S19 J Pro
miners for more efficient S19 XPs. We are still waiting for the
facility in Garden City, Texas to come online as Applied Digital
and the utility provider are still finalizing paperwork. Based on
the latest updates, we continue to believe energization is
imminent.
“We also saw continued progress at our joint
venture in Abu Dhabi which began hashing in July and mined 50
bitcoin in August of which approximately 10 bitcoin is our share.
The JV’s operational hash rate grew to 1.5 exahashes, and we
continue to expect the project’s full 7.0 exahashes to be online
before year-end 2023.
“During August, we reached our primary domestic
growth target of 23 exahashes on an installed basis. As we look to
our next growth target, I am pleased to announce that we have
secured miners in the ordinary course of business for the next 5
exahashes of hash rate growth. With 23 exahashes installed
domestically, two exahashes planned internationally, and an
additional five exahashes of capacity contracted for, Marathon’s
total anticipated hash rate, once fully deployed, is now 30
exahashes.”
Operational Highlights and
Updates
Figure 1: U.S. Operational Highlights
Metric |
8/31/2023 |
8/31/2022 |
% Δ |
|
8/31/2023 |
7/31/2023 |
% Δ |
Bitcoin Produced - U.S. Only |
1,062 |
184.1 |
|
477% |
|
1,062 |
1,176 |
|
-10% |
Average Bitcoin Produced per
Day |
34.3 |
5.9 |
|
477% |
|
34.3 |
37.9 |
|
-10% |
Operational/Energized
Hash Rate (EH/s)1 |
19.1 |
0.6 |
|
2884% |
|
19.1 |
18.8 |
|
2% |
Average Operational Hash Rate
(EH/s)2 |
13.2 |
NA |
|
|
13.2 |
14.0 |
|
-6% |
Installed Hash Rate (EH/s)3 |
23.1 |
0.6 |
|
3509% |
|
23.1 |
22.8 |
|
1% |
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. |
With the majority of Marathon’s U.S. fleet now
powered by S19 XPs, the Company’s average fleet efficiency, based
on manufacturers’ specifications, improved from 25.3 J/TH (joules
per terahash) last month to 25.2 J/TH as of August 1, 2023. Once
fully deployed, Marathon’s U.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 |
8/31/2023 |
8/31/2022 |
% Δ |
|
8/31/2023 |
7/31/2023 |
% Δ |
Total Cash, Cash Equivalents, & Restricted Cash ($, in
millions) |
111.2 |
80.3 |
|
38% |
|
111.2 |
129.4 |
|
-14% |
Unrestricted Cash |
105.5 |
71.5 |
|
48% |
|
105.5 |
115.1 |
|
-8% |
Restricted Cash |
5.7 |
8.8 |
|
-35% |
|
5.7 |
14.3 |
|
-60% |
Total BTC Holdings (in
whole numbers) |
13,286 |
10,311 |
|
29% |
|
13,286 |
12,964 |
|
2% |
Unrestricted BTC Holdings |
13,111 |
6,483 |
|
102% |
|
13,111 |
12,964 |
|
1% |
Restricted BTC Holdings |
175 |
3,828 |
|
-95% |
|
175 |
0 |
NA |
As of August 31, Marathon holds a total of
13,286 BTC, of which 13,111 BTC are unrestricted. The Company opted
to sell 750 BTC during the month of August 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. Marathon occasionally uses a portion of bitcoin for
various treasury activities. As of August 31, 2023, 175 BTC were
restricted, which was not related to collateralization for
borrowing. The Company ended the month with $111.2 million in cash
and cash equivalents on its balance sheet of which $105.5 million
was unrestricted. The combined balance of unrestricted cash and
cash equivalents and bitcoin increased from $201.5 million to
$445.5 million at August 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 September
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:
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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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