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 the
first quarter, ended March 31, 2021.
Preliminary First Quarter 2021 Highlights
- Produced 196 new minted bitcoins in the first quarter of 2021,
increasing total bitcoin holdings to 5,134.2 with a fair market
value of approximately $301.9 million as of March 31, 2021
- At March 31, 2021, cash on hand was approximately $212 million
and total liquidity, defined as cash and bitcoin holdings, was
approximately $513.9 million
- Received approximately 10,300 S-19 Pro ASIC miners from Bitmain
during the first quarter of 2021
Bitcoin Production UpdateIn the first quarter
of 2021, Marathon’s mining fleet produced 196 newly minted
bitcoins. By month, the Company’s bitcoin production was as
follows:
- January 2021: 50.4 BTC
- February 2021: 43.4 BTC
- March 2021: 102.3 BTC
As a result, Marathon currently holds approximately 5,134.2 BTC,
including the 4,812.66 BTC the Company purchased in January 2021
for an average price of $31,168 per BTC. On March 31, 2021, the
fair market value of one bitcoin was approximately $58,800,
implying that the approximate fair market value of Marathon’s
current bitcoin holdings is $301.9 million.
Miner Installations and Hash Rate GrowthAs of
March 31, 2021, Bitmain has delivered approximately 10,300 S-19 Pro
ASIC miners to the Company’s mining facility in Hardin, MT, all of
which were delivered on time and as scheduled. While Marathon
continues to build out its Hardin, MT mining facility and install
miners, adverse weather conditions in March created temporary
installation headwinds. As a result, the Company’s active mining
fleet at the end of the first quarter of 2021 consisted of
approximately 6,800 miners, generating approximately 0.71 EH/s. New
miners are being installed on a daily basis, and based on current
delivery and installation schedules, Marathon continues to expect
all previously purchased miners to be fully installed by the end of
the first quarter of 2022.
Delivery Schedule of MinersWhile delivery
schedules are subject to change given macro factors including but
not limited to weather, customs processing, shipping logistics,
etc., the Company currently anticipates receiving miners from
Bitmain as follows:
- April 2021: 4,800 miners
- May 2021: 1,800 miners
- June 2021: 1,800 miners
- July 2021: 1,800 miners
- August 2021: 7,000 miners
- September 2021: 8,100 miners
- October 2021: 10,500 miners
- November 2021: 14,700 miners
- December 2021: 24,500 miners
- January 2022: 15,200 miners
All miners are currently expected to be installed and fully
operational by March 31, 2022. At that time, Marathon’s total
mining fleet will consist of 103,120 miners generating
approximately 10.37 EH/s. Based on current schedules, Marathon’s
hashrate is expected to scale as follows:
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/91aa18cd-f014-4d67-a2d2-26cd617640ec
Management Commentary“Our business is in the
midst of undergoing a substantial transformation,” said Merrick
Okamoto, Marathon’s chairman and CEO. “As our first quarter bitcoin
production numbers indicate, we are clearly beginning to scale as
new miners come online on a daily basis. In the first ten days of
March, we had installed 3,000 miners at our Hardin facility before
our installation schedule was impacted by adverse weather
conditions. Fortunately, these delays were temporary. Bitmain’s
shipments have continued to arrive as scheduled, and given our
team’s ability to adapt to changing circumstances, we remain well
positioned to continue building out our mining operations. At the
start of 2021, our mining fleet consisted of 2,560 miners,
generating 0.25 EH/s. By early 2022, our mining fleet will consist
of 103,120 miners, generating 10.37 EH/s. That is a 4,081% increase
in power in approximately one year.
“To help our investors better model our rapid growth, we have
opted to publish a timeline that outlines when we expect to receive
the miners that we have already purchased from Bitmain. This
timeline is, of course, subject to change, but it is our hope that
the added transparency will allow investors to better understand
Marathon’s growth potential. Given Bitcoin’s current price and the
clear path we are on to scale Marathon into one of the largest
enterprise Bitcoin mining operations in North America, we believe
we are well positioned to continue executing on our strategy
throughout 2021.”
Investor NoticeInvesting 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 hashrate 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 March 2021. See "Safe Harbor"
below.
Forward-Looking StatementsStatements 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 HoldingsMarathon 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:Jason AssadTelephone:
678-570-6791Email: Jason@marathondh.com
Marathon Digital Holdings Investor
Contact:Gateway Investor RelationsMatt Glover and Charlie
SchumacherTelephone:
949-574-3860Email: MARA@gatewayir.com
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