Marathon Digital Holdings, Inc.
(NASDAQ:MARA) ("Marathon"
or "Company"), a leader in supporting and securing the
Bitcoin ecosystem, today published unaudited bitcoin (“BTC”)
production and miner installation updates for October 2023.
Management Commentary“In
October, we increased our energized hash rate 1% to 19.2 exahashes
as the facility in Garden City, Texas, where we have 4.1 exahashes
of miners installed, began to come online,” said Fred Thiel,
Marathon’s chairman and CEO. “Once this facility is fully
operational later this month, we will have surpassed our 23 exahash
target and solidified Marathon as the largest publicly traded
Bitcoin miner in North America.
“By increasing our hash rate and continuing to
improve our operations at the facility in McCamey, Texas and
elsewhere, we earned 4.0% of the total Bitcoin network’s available
miner rewards and produced 1,202 bitcoin in October. This total
includes 18 bitcoin from our 20% share of the JV in Abu Dhabi. We
now have 2.3 exahashes online in Abu Dhabi as our second, larger
facility in Masdar City has begun powering up. We continue to
expect the full 7.0 exahashes in the UAE to be online by
year-end.
“We have also been exploring new methods of
mining that we believe may allow us to further diversify our
operations, reduce our energy costs, and increase our sustainable
energy mix. We recently announced a pilot project in Utah that is
exclusively powered by landfill methane gas. Naturally produced
methane is often stranded, and Bitcoin miners like Marathon are
uniquely positioned to help capture and convert this
environmentally harmful gas into clean, renewable energy. We look
forward to sharing more of the many innovative mining projects that
we are exploring in the months ahead.”
Operational Highlights and
Updates
Figure 1: U.S. Operational Highlights
Metric |
|
10/31/2023 |
|
|
10/31/2022 |
|
|
% Δ |
|
|
10/31/2023 |
|
|
9/30/2023 |
|
|
% Δ |
|
Bitcoin Produced - U.S. Only |
|
|
1,184 |
|
|
|
615 |
|
|
|
92 |
% |
|
|
1,184 |
|
|
|
1,232 |
|
|
|
-4 |
% |
Average Bitcoin Produced per Day |
|
|
38.2 |
|
|
|
19.8 |
|
|
|
92 |
% |
|
|
38.2 |
|
|
|
41.1 |
|
|
|
-7 |
% |
Share of available miner rewards1 |
|
|
4.0 |
% |
|
|
0.7 |
% |
|
|
457 |
% |
|
|
4.0 |
% |
|
|
3.3 |
% |
|
|
24 |
% |
Energized Hash Rate (EH/s)2 |
|
|
19.2 |
|
|
|
7.0 |
|
|
|
174 |
% |
|
|
19.2 |
|
|
|
19.1 |
|
|
|
1 |
% |
Avg Operational Hash Rate (EH/s)3 |
|
|
17.2 |
|
|
|
NA |
|
|
|
|
|
|
|
17.2 |
|
|
|
15.8 |
|
|
|
9 |
% |
Installed Hash Rate (EH/s)4 |
|
|
23.1 |
|
|
|
7.0 |
|
|
|
230 |
% |
|
|
23.1 |
|
|
|
23.1 |
|
|
|
— |
% |
|
1. Defined as the
total amount of block rewards including transaction fees that
Marathon earned during the period divided by the total amount of
block rewards and transaction fees awarded by the Bitcoin network
during the period. |
2. Defined as the
amount of hash rate that could theoretically be generated if all
miners that have been energized are currently in operation
(includes miners that are temporarily offline for maintenance or
similar reasons). Hash rates are estimates based on the
manufacturers' specifications. All figures are rounded. |
3. Defined as the
average hash rate that was actually generated during the month from
all operational miners. All figures are estimates and are
rounded. |
4. Defined as the
sum of energized hash rate (see above) and hash rate that has been
installed but is not yet energized (e.g., miners are in containers
but not energized). Hash rates are estimates based on the
manufacturers' specifications. All figures are rounded. |
|
The Company’s average fleet efficiency, based on
manufacturers’ specifications, was 25.2 J/TH (joules per terahash)
as of November 1, 2023. Once fully deployed, Marathon’s U.S. fleet
efficiency is expected to be approximately 24 J/TH, according to
the manufacturers’ specifications.
Figure 2: U.S. Operational Details by Site
Hash Rates
in EH/s |
|
|
|
Installed Hash Rate |
|
|
Energized Hash Rate |
|
|
Avg Operating Hash Rate |
|
|
Avg % of Energized |
|
Site |
|
State |
|
|
Host |
|
Oct 2023 |
|
|
Sep 2023 |
|
|
Oct 2023 |
|
|
Sep 2023 |
|
|
Oct 2023 |
|
|
Sep 2023 |
|
|
Oct 2023 |
|
|
Sep 2023 |
|
McCamey |
|
|
TX |
|
|
US Bitcoin |
|
|
7.7 |
|
|
|
7.7 |
|
|
|
7.7 |
|
|
|
7.7 |
|
|
|
6.6 |
|
|
|
5.8 |
|
|
|
86 |
% |
|
|
75 |
% |
Ellendale |
|
|
ND |
|
|
Applied |
|
|
7.7 |
|
|
|
7.7 |
|
|
|
7.7 |
|
|
|
7.7 |
|
|
|
7.2 |
|
|
|
6.6 |
|
|
|
93 |
% |
|
|
86 |
% |
Garden City |
|
|
TX |
|
|
Applied |
|
|
4.1 |
|
|
|
4.1 |
|
|
|
0.2 |
|
|
|
0.0 |
|
|
|
0.0 |
|
|
|
0.0 |
|
|
|
0 |
% |
|
|
0 |
% |
Granbury |
|
|
TX |
|
|
US Bitcoin |
|
|
1.9 |
|
|
|
1.9 |
|
|
|
1.9 |
|
|
|
1.9 |
|
|
|
1.7 |
|
|
|
1.5 |
|
|
|
89 |
% |
|
|
81 |
% |
Jamestown |
|
|
ND |
|
|
Applied |
|
|
1.4 |
|
|
|
1.4 |
|
|
|
1.4 |
|
|
|
1.4 |
|
|
|
1.3 |
|
|
|
1.2 |
|
|
|
89 |
% |
|
|
84 |
% |
|
Note: Table above does not include smaller sites
or the joint venture in the UAE |
|
Marathon and its hosting provider improved
uptime in McCamey, TX from 75% in September to 86% in October.
These improvements helped grow average operational hash rate at
this facility by 14% to 7.2 EH/s. The Company is continuing to
optimize its operations to maximize efficiency and lower operating
costs.
Financial Highlights and
Updates
Figure 3: Financial Highlights
|
|
Year-Over-Year Comparison |
|
|
Prior Month Comparison |
|
Metric |
|
10/31/2023 |
|
|
10/31/2022 |
|
|
% Δ |
|
|
10/31/2023 |
|
|
9/30/2023 |
|
|
% Δ |
|
Total Cash, Cash Equivalents, & Restricted Cash ($, in
millions) |
|
|
156.1 |
|
|
|
60.9 |
|
|
|
156 |
% |
|
|
156.1 |
|
|
|
101.2 |
|
|
|
54 |
% |
Unrestricted Cash |
|
|
156.1 |
|
|
|
52.1 |
|
|
|
200 |
% |
|
|
156.1 |
|
|
|
101.2 |
|
|
|
54 |
% |
Restricted Cash |
|
|
0.0 |
|
|
|
8.8 |
|
|
|
-100 |
% |
|
|
0.0 |
|
|
|
0.0 |
|
|
|
NA |
|
Total BTC
Holdings (in whole numbers)1 |
|
|
13,396 |
|
|
|
11,285 |
|
|
|
19 |
% |
|
|
13,396 |
|
|
|
13,726 |
|
|
|
-2 |
% |
Unrestricted BTC Holdings |
|
|
13,396 |
|
|
|
3,464 |
|
|
|
287 |
% |
|
|
13,396 |
|
|
|
13,726 |
|
|
|
-2 |
% |
Restricted BTC Holdings |
|
|
0 |
|
|
|
7,821 |
|
|
|
-100 |
% |
|
|
0 |
|
|
|
0 |
|
|
|
NA |
|
Pledged BTC
Holdings |
|
|
571 |
|
|
|
0 |
|
|
|
NA |
|
|
|
571 |
|
|
|
0 |
|
|
|
NA |
|
|
1. Reported bitcoin
holdings exclude 571 BTC that have been pledged as collateral in a
hedge transaction. |
|
As of October 31, Marathon holds a total of
13,396 unrestricted BTC. With both hash rate and bitcoin production
increasing, Marathon opted to sell 961 BTC to cover its associated
direct costs. The company intends to sell a portion of its bitcoin
holdings in future periods to support monthly operations, manage
its treasury, and for general corporate purposes. The company also
continued to hedge a portion of its BTC holdings. As of October 31,
571 BTC were pledged as collateral and no longer on Marathon’s
balance sheet.
The Company ended the month with $156.1 million
in cash and cash equivalents on its balance sheet, all of which was
unrestricted. The combined balance of unrestricted cash and cash
equivalents and bitcoin increased from $471.3 million to $620.4
million at October 31, 2023, when compared to the previous
month.
Special Meeting of Shareholders November 10,
2023
Marathon Digital Holdings will hold a Special
Meeting of Shareholders on November 10, 2023 to consider and vote
on several corporate proposals. For more information, please see
the Schedule 14A filed with the Securities and Exchange Commission
on October 2, 2023 and linked here.
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, 2022, filed with the SEC on
March 16, 2023. 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 November 2023. 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 focuses on
supporting and securing the Bitcoin ecosystem. The Company is
currently in the process of becoming one of the largest and most
sustainably powered Bitcoin mining operations in North America.
For more information, visit www.mara.com, or
follow us on:
Twitter: @MarathonDHLinkedIn:
www.linkedin.com/company/marathon-digital-holdings Facebook:
www.facebook.com/MarathonDigitalHoldings Instagram:
@marathondigitalholdings
Marathon Digital
Holdings Company Contact:
Telephone: 800-804-1690Email: ir@mara.com
Marathon Digital Holdings Media
Contact:Email: marathon@wachsman.com
Marathon Digital (NASDAQ:MARA)
Historical Stock Chart
From Jun 2024 to Jul 2024
Marathon Digital (NASDAQ:MARA)
Historical Stock Chart
From Jul 2023 to Jul 2024