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 April
2022.
Historical and Potential Hash Rate Growth Based on
Current Shipment Schedules of Previously Purchased Miners (Subject
to Change)
Corporate Highlights as of May 1, 2022
- Increased total bitcoin holdings to 9,673 BTC with a fair
market value of $365.5 million
- Successfully installed 4,183 miners, representing approximately
0.4 EH/s, in containers at new facility in Texas with thousands of
additional miners being installed and prepared for
energization
- Operating mining fleet consists of 36,830 active miners
producing approximately 3.9 EH/s with thousands of additional
miners expected to be energized in May
- Produced 299 self-mined bitcoin during April 2022 predominantly
due to ongoing maintenance and downtime at the power plant in
Hardin, MT reducing April’s potential bitcoin production by
approximately 30%
- Announced staged transition miners from fossil fuel powered
facility in Hardin, MT during the third quarter of 2022 as part of
the Company’s initiative to achieve 100% carbon neutrality by
year-end 2022
- Cash on hand was approximately $40.4 million and total
liquidity, now defined as cash and available credit facilities, was
approximately $70.4 million; the Company also holds 9,673 BTC with
a fair market value of $365.5 million
- 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 1,558 bitcoin, a 340% 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. In April 2022, the Company’s bitcoin production was
similarly impacted by maintenance to the power generating station
in Hardin, MT.
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 9,673 BTC,
including the bitcoin purchased in January 2021 for an average
price of $31,168 per BTC. On April 30, 2022, the fair market value
of one bitcoin was approximately $37,715, implying that the
approximate fair market value of Marathon’s current bitcoin
holdings is approximately $365.5 million.
Miner Installations and Hash Rate GrowthIn
April, weather and maintenance issues caused the power generating
station in Hardin, MT to operate below normal levels, reducing
Marathon’s potential bitcoin production by approximately 30% during
the month. As disclosed on April 5, Marathon intends to relocate
its miners from Hardin to more sustainable sources of power in
stages during the third quarter of 2022.
During April, approximately 4,200 of Marathon’s miners were
successfully installed, pending energization, in containers at one
of Compute North’s new facilities in Texas. These miners were
originally scheduled to be energized on April 17, increasing
Marathon’s hash rate by approximately 0.4 EH/s, or 11%, from the
prior month. Due to the Company’s energy provider requiring
additional consent from a third-party, the energization of
Marathon’s miners was rescheduled to the month of May. Currently,
the Company does not expect this process to impact future
deployments of miners.
As the Company’s power provider finalizes the energization
process, construction of Compute North’s first major facility in
Texas has continued at pace and thousands of additional miners are
being installed and prepared for energization. Given the current
construction and deployment schedule, Marathon continues to expect
all 199,000 miners, producing approximately 23.3 EH/s, to be
deployed by early 2023. Additionally, the Company continues to
expect its mining operations to be 100% carbon neutral by the end
of 2022.
Management Commentary“In April, we grew our
bitcoin holdings to 9,673 BTC as we successfully installed nearly
4,200 miners in containers and made substantial progress addressing
some of the regulatory and permitting challenges related to
breaking the mold on deploying behind the meter,” said Fred Thiel,
Marathon’s chairman and CEO. “Ongoing maintenance issues at the
power generating station in Montana caused our bitcoin production
to dip by approximately 30% in April. As we announced in April, we
will be transitioning our miners out of Hardin in stages to
minimize downtime and moving them to more sustainable sources of
power during the third quarter.
“In April, approximately 4,200 miners were successfully
installed in containers at one of Compute North’s new facilities in
Texas. These miners were originally scheduled to be energized on
April 17, which would have increased our hash rate by approximately
11% during the month. However, we encountered some friction in
April as our energy partner required the additional consent of a
third-party to energize our installed miners. Encouragingly, we
expect this matter to be resolved early this month, and we do not
anticipate it impacting future deployments.
“While the power provider was working through this process,
construction of Compute North’s facilities continued unimpaired and
thousands of additional miners are currently being installed and
prepared for energization. Based on what we know today about the
pace of construction and deployment, we believe we may be through
our backlog of miners and fully back on track with deployments
before the end of this year. Given the progress we have made at the
start of this year breaking the mold on deploying behind the meter
and the unique advantages we maintain from our asset light model,
we are cautiously optimistic that we are still on pace to achieve
23.3 exahash early next year.”
First Quarter 2022 Earnings Webcast and Conference
CallMarathon Digital Holdings will hold a webcast and
conference call today at 4:30 p.m. Eastern time to discuss its
financial results for the quarter ended March 31, 2022, which will
be published in a press release prior to the call. To register to
participate in the conference call, or to listen to the live audio
webcast, please use this link. The webcast will also be broadcast
live and available for replay via the investor relations section of
the Company’s website at ir.marathondh.com.
Date: Today, May 4, 2022Time: 4:30 p.m. Eastern time (1:30 p.m.
Pacific time)Registration link: LINK
If you have any difficulty connecting with the conference call,
please contact Marathon’s investor relations team at
ir@marathondh.com.
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, filed with the
SEC on March 10, 2022. 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 May 2, 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 "Forward-Looking
Statements" 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 bitcoin 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
Photos accompanying this announcement are available
at:https://www.globenewswire.com/NewsRoom/AttachmentNg/6cc30477-f3f7-4706-8abe-1cbaf979185f
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