Marathon Digital Holdings, Inc.
(NASDAQ:MARA) ("Marathon"
or "Company"), one of the largest enterprise Bitcoin
self-mining companies in North America, today published unaudited
bitcoin (“BTC”) production and miner installation updates for
September 2021 and announced a new $100 million revolving line of
credit (“RLOC”) with Silvergate Bank, a leading provider of
innovative financial infrastructure solutions and services for the
growing digital currency industry.
A chart accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/da19099a-6fda-410e-912b-c6c637e71221
Corporate Highlights as of October 1, 2021
- Produced 1,252.4 new minted bitcoins during Q3 2021, increasing
production by 91% quarter-over-quarter
- Produced 340.6 new minted bitcoins during September 2021,
increasing total bitcoin holdings to approximately 7,035 with a
fair market value of approximately $336.3 million
- Cash on hand was approximately $32.9 million and total
liquidity, defined as cash and bitcoin holdings, was approximately
$369.1 million
- Received approximately 26,960 top-tier ASIC miners from Bitmain
year to date with an additional 8,459 ASIC miners currently in
transit
- Existing mining fleet consists of 25,272 active miners
producing approximately 2.7 EH/s
- Successfully added DMG Blockchain to MaraPool
- On October 1, 2021, obtained a $100 million revolving line of
credit, secured by bitcoin and USD, with Silvergate Bank
Bitcoin Production UpdateAs of October 1, 2021,
Marathon’s mining fleet has produced approximately 2,098 newly
minted bitcoins during 2021. By month, the Company’s bitcoin
production was as follows:
A chart accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/1fd698f5-758e-4eac-a252-1e7ec9c49965
Total Network Hashrate Source:
https://www.blockchain.com/charts/hash-rate
As a result, Marathon currently holds approximately 7,035 BTC,
including the 4,812.66 BTC the Company purchased in January 2021
for an average price of $31,168 per BTC. On October 1, 2021, the
fair market value of one bitcoin was approximately $47,798,
implying that the approximate fair market value of Marathon’s
current bitcoin holdings is approximately $336.3 million.
Miner Installations and Hash Rate GrowthAs of
October 1, 2021, Bitmain has delivered approximately 26,960
top-tier ASIC miners to the Company’s mining facility in Hardin,
MT. In September, global logistics issues began to impact
shipments, elongate delivery times, and affect the original
deployment schedule of miners. While deliveries of miners may
continue to fluctuate in the near-term, based on current estimates,
the Company still anticipates all previously purchased miners to be
delivered by mid-2022. At that time, the Company’s mining fleet is
expected to consist of approximately 133,000 miners, generating
approximately 13.3 EH/s.
Commercial Line of Credit with Silvergate
BankOn October 1, 2021, Marathon secured a $100 million
revolving line of credit with Silvergate Bank, which is a leading
provider of innovative financial infrastructure solutions and
services for the growing digital currency industry. Under the terms
of the agreement, Marathon may utilize the RLOC for general
corporate purposes related to the Company’s bitcoin mining
business, including but not limited to, the acquisition of bitcoin
mining equipment. The RLOC, which is secured by bitcoin and USD,
will be initially available for one year and may be renewed
annually by agreement between Silvergate Bank and Marathon.
Management Commentary“In the third quarter, we
increased our bitcoin production by 91% quarter-over-quarter to
1,252 BTC, which increased our total bitcoin holdings to
approximately 7,035 BTC,” said Fred Thiel, Marathon’s CEO. “Our
September production figures were impacted by a material increase
in the total network’s hash rate, the ‘luck’ factor inherent in
bitcoin mining, and two days of scheduled downtime at the Hardin
power plant. While some amount of downtime and ‘luck’ will always
be present in bitcoin mining, affecting results in the near-term,
we believe our production will become more stable over time as we
continue to bring new miners online and achieve greater scale.
“Bitmain continues to produce miners at a rate consistent with
our expectations, but global logistics issues have begun to
complicate the shipping process and elongate deliveries. While the
rate at which we receive miners has fluctuated and may continue to
do so in the near-term, we remain optimistic that we are well
positioned to scale our hash rate to 13.3 EH/s by the middle of
2022.
“Due to Marathon’s positive track record, our growth trajectory,
our position as one of the largest holders of bitcoin among
publicly traded companies in the U.S., and the broader maturation
of our industry, we were able to obtain a $100 million revolving
line of credit with Silvergate Bank, which is secured by our
bitcoin holdings and USD. This instrument is consistent with our
strategy to focus on agility as it enhances our ability to act
opportunistically and in a manner that is efficient for both our
business and our shareholders. By having this line of credit in
place, we believe Marathon is better positioned to continue growing
over the coming quarters.”
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, 2020. 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 October 2021. The total network’s hash rate data is calculated
from a third-party source, which is available here:
https://www.blockchain.com/charts/hash-rate. Data from third-party
sources has not been independently verified. 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 Digital
Holdings Marathon is a digital asset technology
company that mines cryptocurrencies with a focus on the blockchain
ecosystem and the generation of digital assets.
Marathon Digital
Holdings Company Contact: Charlie
SchumacherTelephone:
800-804-1690Email: charlie@marathondh.com
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