Marathon Digital’s June BTC Production Declines, but Operational Hash Rate Increases
Marathon Digital, one of the leading cryptocurrency mining companies, reported a decrease in its BTC production for June. The company mined 979 BTC, which is 21% less than the previous month’s production of 1,245 BTC. Despite the reduced production, Marathon Digital increased its operational hash rate by 16% to 17.7 exahashes and its installed hash rate to 21.8 exahashes.
The decrease in BTC production was attributed to the extremely hot weather in Texas and the emergence of Ordinals, which resulted in significantly increased transaction fees. The high temperatures in Texas caused some local cryptocurrency mining firms to temporarily halt activities to preserve the electricity network.
To achieve its goal of 23 exahashes per second (EH/s), Marathon Digital plans to bring its facilities in Ellendale, ND, and Garden City, TX online. The company also added 18,500 BTC miners at Applied Digital’s facilities in Ellendale, increasing its total fleet to 149,900 machines.
While Marathon Digital usually follows a HODL strategy, it sold 700 BTC in June and expressed intentions to sell more assets in the future to support monthly operations and manage its treasury. As of the end of June, the company held 12,538 BTC, valued at over $385 million.
Despite operational difficulties in 2022, Marathon Digital had a successful start to 2023. In the first quarter, the company mined 2,195 BTC, significantly more than the previous year’s Q1 production of 1,259 BTC. Marathon Digital also reduced its debt by $50 million and terminated its credit facilities with Silvergate Bank.
Hot Take: Marathon Digital Faces Challenges but Maintains Growth
Marathon Digital’s June BTC production decline may have been influenced by external factors such as extreme weather and increased transaction fees. However, the company’s focus on increasing its operational hash rate and expanding its mining fleet demonstrates its commitment to growth. By adding more BTC miners and optimizing performance, Marathon Digital aims to reach its target of 23 EH/s. Additionally, the company’s decision to sell some of its assets to support operations and manage its treasury shows a strategic approach to financial management. Despite past difficulties, Marathon Digital’s successful start to 2023 indicates potential for further growth in the cryptocurrency mining industry.
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