Marathon Digital Holdings experiences mixed performance in June due to bad weather and decreased transaction fees
Marathon Digital Holdings, a bitcoin mining company, saw a 21% decrease in production in June, with 979 BTC produced. This was attributed to bad weather in Texas and a significant reduction in transaction fees. Bitcoin miners rely on both block rewards and transaction fees, and lower fees result in fewer rewards for miners.
Notable milestones achieved despite the production decline
- Marathon recorded a 16% increase in operational hash rate, reaching 17.7 EH/s.
- The installed hash rate also rose by 8% to 21.8 EH/s
These improvements come ahead of the halving of bitcoin mining rewards in 2023, which historically supports prices and makes bitcoin scarcer.
New joint venture and selling of bitcoin holdings
Marathon announced a new joint venture in Abu Dhabi, expanding its operations. They also revealed plans to sell a portion of their bitcoin holdings to support operations and manage their treasury. As of July 1, Marathon had 12,538 BTC and over $113 million in cash and cash equivalents.
Weather-related impact on mining and previous liquidations
The impact of bad weather on bitcoin mining in Texas has been well-documented. Marathon’s decision to sell bitcoin holdings is similar to Riot Platforms’ decision in July 2022 due to high cooling costs.
Hot Take
Marathon Digital Holdings faced challenges in June due to weather and transaction fee reductions, resulting in a decline in bitcoin production. However, the company achieved notable improvements in operational and installed hash rates. Their decision to sell bitcoin holdings aims to support operations and manage their treasury. The impact of bad weather on mining remains a concern, as seen in previous incidents. Overall, Marathon continues to navigate the volatile bitcoin mining industry while seeking growth opportunities.
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