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 March
2022.
Historical and Potential Hash Rate Growth Based on
Current Shipment Schedules of Previously Purchased Miners (Subject
to Change)
Corporate Highlights as of April 1, 2022
- Produced a record 1,258.6 self-mined bitcoin during Q1 2022, a
556% increase from 191.8 self-mined bitcoin in Q1 2021 and a 15%
sequential increase from 1,098.2 self-mined bitcoin in Q4 2021
- Q1 2021 bitcoin production would have increased 17% from the
prior quarter to 1,281.5 BTC, holding the global hash rate constant
from December 31, 2021 to March 31, 2022
- Produced 436.1 self-mined bitcoin during March 2022, a 21%
increase from the 360.4 self-mined bitcoin during February
2022
- Increased total bitcoin holdings to approximately 9,373.6 BTC
with a fair market value of approximately $427.7 million
- Cash on hand was approximately $118.5 million and total
liquidity, defined as cash and bitcoin holdings, was approximately
$546.2 million
- Successfully deployed 1,320 miners in the month of March
- Increased hash rate 14% during the first quarter of 2022 from
the fourth quarter 2021
- Received approximately 5,600 S19 ASIC miners from BITMAIN
during the month of March
- Existing mining fleet consists of 36,830 active miners
producing approximately 3.9 EH/s
- After receiving final permits and regulatory approval, miners
are currently expected to be energized in the coming weeks and
deployments accelerate throughout the rest of 2022
- The Company continues to expect its mining operations to be
100% carbon neutral by the end of 2022
Bitcoin Production UpdateYear-to-date,
Marathon’s mining fleet has produced 1,258.6 bitcoin, a 556%
increase over the same time period in the prior year. 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 9,373.6 BTC,
including the 4,813 BTC the Company purchased in January 2021 for
an average price of $31,168 per BTC. On April 1, 2022, the fair
market value of one bitcoin was approximately $45,539, implying
that the approximate fair market value of Marathon’s current
bitcoin holdings is approximately $427.7 million.
Miner Installations and Hash Rate
GrowthMarathon’s current strategy is to deploy its miners
predominantly behind the meter at sustainable, non-carbon emitting
power stations. In an effort to maximize the uptime of the
Company’s miners, a grid connection is being established at these
locations for when the renewable power stations operate
intermittently. Establishing this grid connection is a new process
that required additional coordination and permitting from the
various parties, including the grid operator. This extended
approval process caused the deployments of Marathon’s miners to be
delayed by approximately 45 days during the first quarter of 2022.
However, in March, the Company received word that full approval had
been received and that initial energization is expected in the
coming weeks.
Currently, deployments of containers are ongoing at an
accelerated rate at Compute North’s new facilities in Texas. These
facilities are at multiple locations and include a 280-megawatt
(MW) site in west Texas. Despite slight changes to the early
deployment schedule, Marathon continues to expect 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. Additionally the Company continues to expect its mining
operations to be 100% carbon neutral by the end of 2022.
Management Commentary“In the first quarter of
2022, we increased our bitcoin production 15% from the prior
quarter and produced a record 1,259 bitcoin even as the global hash
rate rose by approximately 17%,” said Fred Thiel, Marathon’s CEO.
“Our bitcoin production would have increased 17% to 1,282 BTC if
the global hash rate had remained constant from the end of Q4 2021.
We continue to hold, or HODL, all of our bitcoin, and as a result,
we now hold 9,374 bitcoin, strengthening our standing as one of the
largest holders of bitcoin among publicly traded companies.
“At Marathon, we are constantly pushing the boundaries to propel
our business and our industry forward. Not every industry operates
at the same pace as we do, and sometimes innovative solutions can
take time to implement. Deploying behind the meter at renewable
power facilities has many benefits to our business, to the grid,
and to the local community, but this pioneering approach comes with
unique challenges that we have had to overcome: most notably,
feeding power from the grid back into a power station at large
scale.
“Typically, power flows from power stations into the grid.
However, to ensure we have a consistent power supply when the
renewable sources are operating intermittently, we also needed
power to flow from the grid back into the power station at scale.
This is a new process, and it look longer than originally
anticipated for the various parties involved to coordinate and
complete the permitting and approval process. As a result, the
major ramp in our deployments did shift by approximately 45 days
during the first quarter.
“Encouragingly, in March, we received word that the our hosting
provider and the power companies received permission to move
forward with our full deployments in earnest. As a result, we
believe these delays are now behind us. Currently, deployments of
containers are ongoing at an accelerated rate. Barring any other
regulatory hurdles or unforeseen events, we expect to see new
miners energized in the coming weeks and for this process to
accelerate throughout the rest of the year. Despite the changes to
our schedule, based on what we know today, we still believe we are
on track to reach 23.3 EH/s by early next year.
“Our primary focus at Marathon remains on deploying our miners.
Given our record first quarter, our ability to work alongside our
partners to overcome obstacles, and the positive news we recently
received regarding deployments, we remain confident in our ability
to continue to execute on our strategy of scaling Marathon into one
of the largest, most agile, and most sustainably operated Bitcoin
miners in North America.”
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, 2021. 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 March 2022. 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: Telephone:
800-804-1690Email: ir@marathondh.com
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