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 June 2021.
Corporate Highlights as of July 1, 2021
- Produced 265.6 new minted bitcoins during June 2021, increasing
total bitcoin holdings to approximately 5,784 with a fair market
value of approximately $201.6 million
- Cash on hand was approximately $170.6 million and total
liquidity, defined as cash and bitcoin holdings, was approximately
$372.2 million
- Received approximately 18,702 S-19 Pro ASIC miners from Bitmain
year to date with an additional 1,056 S-19 Pro ASIC miners
currently in transit
- Increased active mining fleet to approximately 19,395 miners,
generating approximately 2.09 EH/s
- Completed construction of the
containers that house mining rigs at the Company’s mining facility
in Hardin, MT
Bitcoin Production UpdateAs of July 1, 2021,
Marathon’s mining fleet has produced approximately 846 newly minted
bitcoins during 2021. By month, the Company’s bitcoin production
was as follows:
- January 2021: 50.4 BTC
- February 2021: 43.4 BTC
- March 2021: 97.9 BTC
- April 2021: 162.1 BTC
- May 2021: 226.6 BTC
- June 2021: 265.6 BTC
As a result, Marathon currently holds approximately 5,784 BTC,
including the 4,812.66 BTC the Company purchased in January 2021
for an average price of $31,168 per BTC. On July 1, 2021, the fair
market value of one bitcoin was approximately $34,855, implying
that the approximate fair market value of Marathon’s current
bitcoin holdings is approximately $201.6 million.
Miner Installations and Hashrate GrowthDuring
June, Marathon completed construction of the remaining containers
which will house approximately two-thirds the Company’s mining rigs
at its facility at Hardin, MT. The balance of the miners will be
housed in a new structure currently under construction. All
containers at Hardin have been built out and are ready to receive
new miners according to previously released delivery schedules of
1,800 in July, 7,000 in August and the final tranche of
approximately 3,200 in September, after which, the Company will
commence installing its remaining 73,000 miners at a new
300-megawatt facility in Texas, hosted by Compute North.
As of July 1, 2021, Bitmain has delivered approximately 18,702
S-19 Pro ASIC miners to the Company’s mining facility in Hardin,
MT, all of which were delivered on time and as scheduled. During
the month of June, Marathon installed 1,740 new miners, increasing
the Company’s active mining fleet to approximately 19,395 miners,
generating approximately 2.09 EH/s.
New miners continue to be installed on a daily basis. 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, at which point, the Company’s
mining fleet will consist of approximately 103,120 miners,
generating approximately 10.37 EH/s.
As of June 30, 2021, 1,056 miners have been received or are in
transit, with the balance expected in July due to global logistics
delays. Future deliveries are expected as originally scheduled.
Management Commentary“In June, we produced
265.6 bitcoins, which is a 17% increase from the 226.6 bitcoins we
produced in May, and we increased our hashrate to 2.09 EH/s after
installing another 1,740 miners,” said Fred Thiel, Marathon’s CEO.
“We also completed building and preparing the remaining containers
which will house our mining rigs in Hardin, MT. As a result, we are
well positioned to receive and install the remaining miners at
Hardin before turning our attention to the new facility in Texas,
which will house the majority of our miners and which will be 100%
carbon neutral.
“May, June, and July are slower delivery months as the majority
of our miners are expected to be delivered this fall. We are
therefore taking advantage of this opportunity to proactively
perform maintenance and upgrades on a portion of our existing
containers and systems before delivery schedules accelerate and to
prepare for the expected decrease in global hashrate. These
preparatory actions resulted in some of our miners being offline
during June, temporarily decreasing our hashrate. However, we still
increased our bitcoin production month over month, and we are now
better prepared to receive the large upcoming shipments and take
advantage of expected favorable mining conditions.
“Given our current delivery schedule and the macro events
affecting the global network hashrate, Marathon remains
particularly well positioned to scale and thrive in the current
mining environment.”
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 July 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
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/04d1280f-5f17-48e8-83b7-97d768a91264
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