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
December 2021.
Historical and Potential Hash Rate Growth Based on
Current Shipment Schedules of Previously Purchased Miners (Subject
to Change)
Corporate Highlights as of January 1, 2022
- Produced approximately 3,197 self-mined bitcoin in fiscal year
2021, an 846% increase year-over-year
- Produced 1,098 self-mined bitcoin during Q4 2021, including a
record 484.5 self-mined bitcoin during December 2021
- Increased total bitcoin holdings to approximately 8,133 BTC
with a fair market value of approximately $375.8 million
- Cash on hand was
approximately $268.5 million and total liquidity, defined as cash
and bitcoin holdings, was approximately $644.3 million
- Received approximately 10,365 top-tier ASIC miners from BITMAIN
during the month of December and 72,495 miners in 2021 with an
additional 10,907 miners currently in transit
- Continued installing miners at various facilities operated by
Compute North as construction of new mining facilities
progresses
- Existing mining fleet consists of 32,350 active miners
producing approximately 3.5 EH/s
- In December, purchased a record
number of ANTMINER S19 XP (140 TH/s) bitcoin miners from BITMAIN,
increasing Marathon’s total mining fleet to approximately 199,000
bitcoin miners producing approximately 23.3 EH/s by early 2023
Bitcoin Production UpdateMarathon’s mining
fleet produced approximately 3,197 self-mined bitcoin during 2021,
an 846% increase from approximately 338 self-mined bitcoin during
2020. By month, the Company’s bitcoin production was as
follows:
*Note: Upgrades and maintenance to the power generating station
in Hardin, MT caused Marathon’s bitcoin mining operations in
Hardin, MT to operate at substantially reduced capacity in November
2021, negatively impacting the Company’s bitcoin production for the
month. For further information, see the press release issued on
12/03/2021.
Total Network Hash Rate Source:
https://www.blockchain.com/charts/hash-rate
The Company last sold bitcoin on October 21, 2020, and since
then, has been accumulating or “hodling” all bitcoin generated. As
a result, Marathon currently holds approximately 8,133 BTC,
including the 4,813 BTC the Company purchased in January 2021 for
an average price of $31,168 per BTC. On January 1, 2022, the fair
market value of one bitcoin was approximately $46,208, implying
that the approximate fair market value of Marathon’s current
bitcoin holdings is approximately $375.8 million.
Miner Installations and Hash Rate GrowthDuring
fiscal year 2021, Marathon successfully deployed 30,391 top-tier
bitcoin miners and completed the construction of its mining
facility in Hardin, MT. As a result, the Company increased its hash
rate by 1,790% from 0.2 EH/s in January 2021 to 3.5 EH/s in
December 2021.
Marathon is continuing to work with Compute North to deploy
miners at Compute North’s existing facilities as well as at new
locations that are “behind the meter” at wind and solar farms
operated by one of the largest renewable energy power providers in
North America. Construction of Compute North’s new facilities,
including a 280-megawatt (MW) site in west Texas, remains underway.
Based on current construction schedules, Marathon expects to begin
deploying miners at Compute North’s new facilities in the first
quarter of 2022.
On December 23, 2021, Marathon announced that it had entered
into a contract with BITMAIN to purchase a record number of
ANTMINER S19 XP (140 TH/s) bitcoin miners, all of which are
currently expected to ship from BITMAIN between July 2022 and
December 2022. Marathon currently expects all of its purchased
miners to be deployed by early 2023, at which point, the Company’s
mining operations are expected to consist of approximately 199,000
bitcoin miners, producing approximately 23.3 EH/s, making Marathon
one of the largest known publicly traded bitcoin miners in the
world.
Management Commentary“2021 was a transformative
year for Marathon as we increased our hash rate 1,790% and
increased our bitcoin production 846% year-over-year to 3,197
self-mined BTC,” said Fred Thiel, Marathon’s CEO. “We finished the
year with our most productive month to date, producing 484.5
bitcoin in December and 1,098 bitcoin in the fourth quarter. We
expanded our agreement with Compute North and secured access to
reliable hosting and renewable power behind the meter at industry
low rates for over 100,000 of our previously purchased miners. And
more recently, we placed a record order for BITMAIN’S newest
machines, the S19 XP. As a result, we have increased our projected
hash rate by 75% from our prior projection of 13.3 EH/s by the
middle of 2022 to 23.3 EH/s by early 2023.
“We are starting 2022 with substantial momentum and a clear path
to grow throughout this year and beyond. Today, we have access to
top-tier hosting and renewable power, a strong balance sheet with
$644.3 million in total liquidity, and nearly 167,000 industry
leading bitcoin miners being added to our fleet between the start
of this year and early 2023. We are currently installing machines
at Compute North’s existing facilities and testing deployments at
new locations. With construction progressing over the coming
months, we expect to see these deployments accelerate as we move to
full production. We are optimistic that 2022 will be another great
year for our business, and we look forward to growing Marathon into
one of the leading bitcoin miners in North America and potentially
the largest known miner in the world 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 January 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
Photos accompanying this announcement are available at
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