Marathon Digital Holdings Announces Bitcoin Production and Mining Operation Updates for February 2024
Marathon Digital Holdings, Inc. (MARA) reported a 9% increase in energized hash rate to 28.7 EH/s and a rise in BTC holdings to 16,930 BTC, with total cash and BTC of $1.5B as of February 29, 2024. Despite operational challenges affecting bitcoin production, the company remains focused on strengthening its balance sheet and launching new tools and services for the Bitcoin ecosystem.
The recent operational update from Marathon Digital Holdings, Inc. provides significant insights into the company's financial health and operational efficiency. The increase in total cash and BTC holdings to $1.5 billion is a robust indicator of the company's liquidity and asset accumulation strategy. This financial buffer could potentially provide resilience against market volatility and facilitate strategic investments or acquisitions, particularly as the industry prepares for the next Bitcoin network halving. The sale of 290 BTC suggests a proactive treasury management approach, aiming to balance asset appreciation with operational cash flow needs.
Marathon's adoption of the FASB's new accounting standard for crypto assets , ASU 2023-08, reflects a forward-looking compliance posture and may enhance the transparency of its financial reporting, potentially affecting investor perception and stock valuation. The increase in unrestricted cash by 33% year-over-year is a positive signal for investors, indicating a solid financial position and the ability to weather operational challenges.
Marathon's operational challenges, including unplanned outages at key sites, have resulted in a reduction of the operational hash rate and a 23% decrease in Bitcoin production from the previous month. This dip, however, is contrasted by a significant year-over-year increase in bitcoin production, showcasing the company's growth trajectory. The operational hash rate issues highlight the inherent risks associated with cryptocurrency mining operations, such as reliance on physical infrastructure and the impact of maintenance or technical difficulties.
Despite these challenges, Marathon's strategic focus on launching new tools and services like Slipstream and Anduro illustrates an effort to diversify and innovate within the Bitcoin ecosystem. This could enhance the company's competitive edge and create additional revenue streams. The company's role in converting energy into economic value is central to its value proposition, especially in the context of the broader discussion on the environmental impact of Bitcoin mining.
The update on Marathon's energized hash rate increasing by 9% to 28.7 EH/s is a crucial metric for understanding the company's mining capacity and potential revenue generation from Bitcoin mining. The hash rate is a measure of the computational power per second used when mining and an increase in this rate generally correlates with a higher probability of earning Bitcoin rewards.
The operational highlights reveal a strategic emphasis on scaling operations, as evidenced by the year-over-year growth in energized hash rate and installed hash rate. However, the average operational hash rate's decline indicates that not all installed capacity is being utilized effectively, which could point to inefficiencies or ongoing maintenance issues. The share of available miner rewards and the number of blocks won are critical for assessing Marathon's performance within the competitive mining landscape and its ability to capitalize on its increased hash rate.
03/05/2024 - 05:23 PM
- Increased Energized Hash Rate 9% M/M to 28.7 EH/s
- Increased BTC Holdings to 16,930 BTC; Total Cash and BTC of $1.5B as of February 29, 2024
Fort Lauderdale, FL, March 05, 2024 (GLOBE NEWSWIRE) -- 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 February 2024.
Management Commentary 43% of our energized hash rate, experienced unplanned outages due to transformer and transmission line maintenance. Last week, Garden City was re-energized and Ellendale was nearly back to full strength. However, while Garden City is now fully operational, infrastructure issues at Ellendale are still being resolved as capacity at that site is being ramped up.
"Largely due to these maintenance issues, we operated at an average of 61% of our total energized capacity in February. As a result, we produced 833 bitcoin last month. Our team is actively working with our hosting providers to bring sites back to full strength and to make the necessary repairs to mitigate these issues in the future. We will continue to provide updates on our progress as they materialize. While we work through these issues, we increased our hash rate another 9% to 28.7 exahash.
"We have also continued to strengthen our balance sheet by increasing our bitcoin holdings to 16,930 BTC and bringing our combined cash and bitcoin to approximately $1.5 billion . As we look to capitalize on strategic opportunities, we have also begun launching new tools and services for those who are building the future of Bitcoin, including Slipstream and Anduro. While both are in early stages, we are confident that these innovations and others, which we expect to announce later this year, will help differentiate Marathon and add to our our position as a leader in converting energy into economic value."
Operational Highlights and Updates Figure 1: Operational Highlights
Year-Over-Year Comparison Prior Month Comparison Metric 2/29/2024 2/28/2023 % Δ 2/29/2024 1/31/2024 % Δ Bitcoin Produced 833 683 22 % 833 1,084 (23 )% Average Bitcoin Produced per Day 28.7 24.4 18 % 28.7 35.0 (18 )% Share of available miner rewards 1 3.0 % 2.5 % — % 3.0 % 3.5 % — % Transaction Fees as % of Total 5 5.1 % 2.4 % — % 5.1 % 11.4 % — % Number of Blocks Won 5 110 72 53 % 110 140 (21 )% Energized Hash Rate (EH/s) 2 28.7 9.5 202 % 28.7 26.4 9 % Average Operational Hash Rate (EH/s) 3 17.6 6.6 167 % 17.6 19.3 (9 )% Installed Hash Rate (EH/s) 4 28.7 14.0 105 % 28.7 26.9 7 %
Defined as the total amount of block rewards including transaction fees that Marathon earned during the period divided by the total amount of block rewards and transaction fees awarded by the Bitcoin network during the period. Defined as the amount of hash rate that could theoretically be generated if all miners that have been energized are currently in operation including miners that may be temporarily offline. Hash rates are estimates based on the manufacturers' specifications. All figures are rounded. Defined as the average hash rate that was actually generated during the month from all operational miners. All figures are estimates and are rounded. Defined as the sum of energized hash rate (see above) and hash rate that has been installed but not yet energized. Hash rates are estimates based on the manufacturers' specifications. All figures are rounded. These metrics are MaraPool only, do not include the joint ventures. In February, Marathon increased its operating fleet by 8% to approximately 231,000 Bitcoin miners, theoretically capable of producing approximately 28.7 EH/s, after approximately 16,000 of Marathon’s Bitcoin miners (c. 2.0 EH/s) were energized. Hash rate figures are calculated according to the manufacturer’s specifications.
Fig ur e 2: Operational Deta ils by Site
Hash Rates in EH/s Installed Hash Rate Energized Hash Rate Avg Operating Hash Rate Avg % of Energized Site State Host Feb 2024 Jan 2024 Feb 2024 Jan 2024 Feb 2024 Jan 2024 Feb 2024 Jan 2024 McCamey TX US Bitcoin 7.7 7.7 7.7 7.7 6.0 6.4 78 % 82 % Ellendale ND Applied 7.8 7.8 7.8 7.8 1.8 4.0 23 % 51 % Garden City TX Applied 4.5 4.5 4.5 4.5 2.6 3.8 57 % 83 % Granbury TX US Bitcoin 4.2 2.8 4.2 2.8 3.4 2.2 82 % 78 % Jamestown ND Applied 1.4 1.4 1.4 1.4 1.4 1.3 97 % 90 % All Other Various 3.1 2.7 3.1 2.2 2.4 1.8 77 % 82 % Total 28.7 26.9 28.7 26.4 17.6 19.3 61 % 73 %
As of February 29, the Company holds a total of 16,930 unrestricted BTC. Marathon opted to sell 290 bitcoin in February. The Company still intends to sell a portion of its bitcoin holdings in future periods to support monthly operations, manage its treasury, and for general corporate purposes.
Financial Highlights and Updates Figure 3: Financial Highlights
Year-Over-Year Comparison Prior Month Comparison Metric 2/29/2024 2/28/2023 % Δ 2/29/2024 1/31/2024 % Δ Total Cash, Cash Equivalents & Restricted Cash ($, in millions) $ 425.6 $ 228.5 86 % $ 425.6 $ 318.9 33 % Unrestricted Cash 425.6 219.7 94 % 425.6 318.9 33 % Restricted Cash — 8.8 (100 )% — — — % Total BTC Holdings (in whole numbers) 16,930 11,392 49 % 16,930 15,741 8 % Unrestricted BTC Holdings 16,930 8,260 105 % 16,930 15,741 8 % Restricted BTC Holdings — 3,132 (100 )% — — — % Pledged BTC Holdings — — — % — 700 (100 )%
$425.6 million in cash and cash equivalents on its balance sheet at month end, all of which was unrestricted. During February, the combined balance of unrestricted cash and cash equivalents and bitcoin increased from $988.7 million to $1,461.3 million at February 29, 2024. In anticipation of the next Bitcoin network halving, the Company continues to build liquidity on the balance sheet to capitalize on strategic opportunities, including industry consolidation.
The company early adopted FASB's new accounting standard for crypto assets, ASU 2023-08 as of December 31, 2023.
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About Marathon Digital Holdings
For more information, visit www.mara.com
Twitter: @MarathonDH www.linkedin.com/company/marathon-digital-holdings www.facebook.com/MarathonDigitalHoldings @marathondigitalholdings
Marathon Digital Holdings Company Contact: ir@mara.com
Marathon Digital Holdings Media Contact: marathon@wachsman.com
What was the increase in energized hash rate reported by Marathon Digital Holdings, Inc. (MARA)?
Marathon Digital Holdings reported a 9% increase in energized hash rate to 28.7 EH/s.
How many BTC holdings did Marathon Digital Holdings (MARA) have as of February 29, 2024?
Marathon Digital Holdings had 16,930 BTC as of February 29, 2024.
What was the total cash and BTC amount held by Marathon Digital Holdings (MARA) as of February 29, 2024?
Marathon Digital Holdings had a total of $1.5 billion in cash and BTC as of February 29, 2024.
What operational challenges did Marathon Digital Holdings (MARA) face in February 2024?
Marathon faced operational challenges due to unplanned outages at Garden City and Ellendale sites, resulting in reduced operational hash rate and bitcoin production for the month.
What new tools and services has Marathon Digital Holdings (MARA) launched for the Bitcoin ecosystem?
Marathon Digital Holdings has launched new tools and services like Slipstream and Anduro for those building the future of Bitcoin, with more innovations expected to be announced later this year.
