Marathon Patent Group Completes $200 Million Capital Raise, Ending the Year with $217.6 Million in Cash
January 04 2021 - 6:45AM
Marathon Patent Group, Inc. (NASDAQ:
MARA)
("Marathon" or "Company"), one of the largest enterprise Bitcoin
self-mining companies in North America, today announced that it has
successfully completed its previously announced $200 million shelf
offering by utilizing its at-the-market (ATM) facility. As a
result, the Company ended the 2020 fiscal year with $217.6 million
in cash and 74,656,549 shares outstanding.
Marathon intends to utilize the funds from this recent capital
raise to pay for the miners it has purchased from Bitmain and to
further grow the business. To date, the Company has purchased
103,060 miners, which, once delivered and fully deployed, will
produce approximately 10.36 EH/s. 15,200 of these units are
scheduled to be shipped in the first quarter of 2021, and the
Company currently anticipates installing 4,000 units in February,
6,300 in March, and 4,800 in April. After initial deposits were
paid, Marathon’s remaining balance due to Bitmain was $163.0
million, indicating that the Company’s current cash position is
more than adequate to cover the costs of all miners purchased as of
December 31, 2020.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/2fb70d7a-d61d-464e-88e5-e9cac15d361c
“Completing this capital raise was a milestone for our business
as it provided us with an efficient means of procuring the
necessary funds to pay for the miners we have purchased from
Bitmain,” said Marathon’s chairman and chief executive officer,
Merrick Okamoto. “We operate in a volatile industry in which
prescient timing and scale are paramount to efficiently driving
profitability. The unique relationship we have built with Bitmain
allowed us to secure a record number of miners, which because of
the substantial increase in Bitcoin’s price and subsequent increase
in demand for mining rigs, are now being sold in secondary markets
at multiples of our purchase price.
“According to publicly available Bitcoin profit calculators, if
all the miners we have purchased were deployed today, and Bitcoin’s
price were $28,000/BTC, we would produce approximately $618 million
in revenue annually and approximately $523 million in gross profit
annually. Marathon is clearly on a path to become one of the
largest miners in North America, and this capital raise indicates
that we are not only gaining important scale, but we are doing so
effectively and efficiently.”
Bitcoin Profit Calculations
The projected results above were obtained using the ViaBTC
Profit Calculator (https://www.viabtc.com/tools/calculator)
assuming a hashrate of 10.36 EH/s, power cost of $0.028 per kWh,
and hosting costs of $0.006 per kWh. These results should not be
considered a forward forecast of revenue by the Company. These
results could be materially affected by the price of Bitcoin and an
increase in hashrate mining difficulty and are subject to delivery
of all miners.
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, 2019. 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
hashrate may also materially affect the future performance of
Marathon's production of Bitcoin. See "Safe Harbor" 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 Patent Group
Marathon is a digital asset technology company that mines
cryptocurrencies, with a focus on the blockchain ecosystem and the
generation of digital assets.
Marathon Patent
Group Company Contact:
Jason AssadTelephone:
678-570-6791Email: Jason@marathonpg.com
Marathon Patent Group Investor
Contact:
Gateway Investor RelationsMatt Glover and Charlie
SchumacherTelephone:
949-574-3860Email: MARA@gatewayir.com
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