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“The
operational challenges that commenced in January, continued into
February and reduced our operational hash rate and our bitcoin
production for the month,” said Fred Thiel, Marathon’s chairman and
CEO. “The Garden City and Ellendale sites, which are operated by
Applied Digital and collectively represent approximately 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
UpdatesFigure 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.
Figure 2: Operational Details 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
UpdatesFigure 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 |
)% |
Marathon held $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.
Upcoming ConferencesPowering Africa SummitMarch
5-6, 2024The Mayflower Hotel - Washington D.C.
36th Annual ROTH ConferenceMarch 17-19, 2024The Ritz Carlton -
Dana Point, California
Empower Energizing BitcoinPresenting March 27, 2024713 Music
Hall - Houston, TX
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, 2023, filed with the SEC on
February 28, 2024. 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. See "Forward-Looking
Statements" below.
Forward-Looking Statements This
press release contains forward-looking statements within the
meaning of the federal securities laws. Forward-looking statements
in this press release relate to the expected timing and achievement
of our growth targets, specifically relating to our anticipated
hash rate and exahash growth. You can identify forward-looking
statements by the use of words such as “may,” “will,” “could,”
“anticipate,” “expect,” “intend,” “believe,” “continue,” or the
negative of such terms, or other comparable terminology.
Forward-looking statements include the assumptions underlying or
relating to such statements. The Company has based these
forward-looking statements largely on its current expectations and
projections about future events and trends that we believe may
affect its business, results of operations and financial condition.
The outcomes of the events described in these forward-looking
statements are subject to risks, uncertainties and other factors
described under the heading “Risk Factors” in the reports the
Company files with the Securities and Exchange Commission. The
Company cannot assure you that the events and circumstances
reflected in the forward-looking statements will be achieved or
occur, and actual results could differ materially from those
expressed or implied in the forward-looking statements. The
forward-looking statements made in this press release relate only
to events as of the date of this press release. The Company
undertakes no obligation to update any forward-looking statement to
reflect events or circumstances after the date on which the
statement is made.
About Marathon Digital Holdings
Marathon is a digital asset technology company that focuses on
supporting and securing the Bitcoin ecosystem. The Company is
currently in the process of becoming one of the largest and most
sustainably powered Bitcoin mining operations in North America.
For more information, visit www.mara.com, or
follow us on:
Twitter: @MarathonDHLinkedIn:
www.linkedin.com/company/marathon-digital-holdings Facebook:
www.facebook.com/MarathonDigitalHoldings Instagram:
@marathondigitalholdings
Marathon Digital
Holdings Company Contact: Telephone: 800-804-1690Email:
ir@mara.com
Marathon Digital Holdings Media
Contact:Email: marathon@wachsman.com
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