Marathon Patent Group Provides Update on S-9 Antminer Installation
December 18 2019 - 9:00AM
Marathon Patent Group, Inc. (NASDAQ:
MARA)
("Marathon" or the "Company"), today announced that as of December
12th, 2019, the Company has 3,600 S-9 Bitmain 13.5 TH/s
Bitcoin Antminers installed and operational. This
installation increases the Company’s total Hashing capacity from
approximately 14 Petahash per second pre-deployment, to a current
per second rate of approximately 50 Petahash.
The Company previously disclosed it had executed a hosting
agreement on October 3rd, 2019 which provided for an installation
schedule from the hosting company. The schedule indicated all 7,200
S-9 Antminers were to be installed by December 15th, 2019, absent
any equipment receipt delays not in their control. Unfortunately,
the hosting company experienced numerous delays, primarily as a
result of the delayed receipt of the custom-built containers needed
to house our mining equipment, resulting in only half (3,600)
miners being installed as of last week.
The unforeseen delay did afford management the opportunity to
reevaluate the substantial increase of its mining operation given
the recent deterioration in Bitcoin market conditions. After the
price of Bitcoin bottomed near $3,200 in February 2019, it
subsequently rose to over $13,800 in the summer of 2019. The
Company’s management believed in early Fall that the market
conditions provided it the right opportunity to make the investment
to expand its mining operation. Bitcoin prices, had they remained
consistent, would have dramatically increased the company’s cash
flow; however, as it has turned out, the price of Bitcoin began a
steady decline toward $6,500.
Based on the change in Bitcoin market conditions, management has
made the decision to suspend further deployment of the remaining
3,600 miners at this time. The Company will continue to monitor
market conditions in advance of restarting the deployment of our
remaining 3,600 miners.
Merrick Okamoto, Marathon Chief Executive Officer, stated,
“While we were excited to expand our mining operation in October,
this subsequent decline in Bitcoin prices would not produce the
profits we anticipated. At this time, it does not make strategic
sense to double our current mining operation absent certainty that
it would produce profits for our shareholders.”
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, 2018. 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 "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.
Name: Jason Assad Phone: 678-570-6791 Email:
Jason@marathonpg.com
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