Marathon Digital Holdings, Inc.
(NASDAQ: MARA)
("Marathon" or "Company"), one of the world’s largest
publicly traded Bitcoin miners and a leader in supporting and
securing the Bitcoin ecosystem, today published unaudited bitcoin
(“BTC”) production and miner installation updates for March 2024.
Management
Commentary"Throughout the first quarter, our Bitcoin
production has been impacted by unexpected equipment failures,
transmission line maintenance, and higher than anticipated
weather-related curtailment across multiple sites," said Fred
Thiel, Marathon's chairman and CEO. "After maintenance issues at
Garden City were addressed, the site experienced higher than
anticipated curtailment in March. At Granbury, McCamey, and
Ellendale, we are continuing to work through transformer issues
that have reduced capacity at those sites below historical
norms.
"While the site in Ellendale was briefly
recovered and re-energized at the end of February, it had to be
brought back down due to the persistence of quality issues with the
transformers sourced at the site. The demonstrated complexity of
re-energizing Ellendale, along with the latest information and
recent progress, indicates that capacity at this site is likely to
be gradually increased over the coming months. Applied Digital is
using its best commercially reasonable efforts to shorten and pull
up the energization timeline.
"While our hosting provider continues to swap in
newly acquired transformers and bring capacity at Ellendale back
online, we have continued to focus on optimizing our performance at
other sites. In March, we began relocating miners from Ellendale to
take advantage of the additional capacity we recently acquired
through our strategic acquisitions of sites in Texas and Nebraska.
We are also preparing to transition part of Granbury to immersion
to optimize performance. Despite the challenges, we increased our
average operational hash rate by 4% in March to 18.3 exahash, and
we increased our bitcoin production 7% to 894 bitcoin. We now have
17,381 BTC on our balance sheet, and our combined cash and bitcoin
holdings are approximately $1.6 billion.
"As Ellendale is gradually brought back online,
we intend to further develop our Bitcoin mining portfolio, which is
growing to approximately 1.1 gigawatts of capacity diversified
across 11 sites on three continents, and leveraging our recently
announced technology innovations, like our two-phase immersion
cooling system, to optimize performance and expand our position as
a leader in converting energy into economic value."
Operational Highlights and
UpdatesFigure 1: Operational Highlights
|
|
Year-Over-Year
Comparison |
|
|
Prior Month
Comparison |
|
Metric |
|
3/31/2024 |
|
|
3/31/2023 |
|
|
% Δ |
|
|
3/31/2024 |
|
|
2/29/2024 |
|
|
% Δ |
|
Bitcoin Produced |
|
|
894 |
|
|
|
825 |
|
|
|
8 |
% |
|
|
894 |
|
|
|
833 |
|
|
|
7 |
% |
Average Bitcoin Produced per Day |
|
|
28.8 |
|
|
|
26.6 |
|
|
|
8 |
% |
|
|
28.8 |
|
|
|
28.7 |
|
|
|
— |
% |
Share of available miner rewards 1 |
|
|
3.0 |
% |
|
|
2.7 |
% |
|
|
9 |
% |
|
|
3.0 |
% |
|
|
3.0 |
% |
|
|
— |
% |
Transaction Fees as % of Total 5 |
|
|
4.5 |
% |
|
|
3.1 |
% |
|
|
47 |
% |
|
|
4.5 |
% |
|
|
5.1 |
% |
|
|
(11 |
)% |
Number of Blocks Won 5 |
|
|
118 |
|
|
|
81 |
|
|
|
46 |
% |
|
|
118 |
|
|
|
110 |
|
|
|
7 |
% |
Energized Hash Rate (EH/s)
2 |
|
|
27.8 |
|
|
|
11.5 |
|
|
|
142 |
% |
|
|
27.8 |
|
|
|
28.7 |
|
|
|
(3 |
)% |
Average Operational Hash Rate (EH/s) 3 |
|
|
18.3 |
|
|
|
11.5 |
|
|
|
59 |
% |
|
|
18.3 |
|
|
|
17.6 |
|
|
|
4 |
% |
Installed Hash Rate (EH/s)
4 |
|
|
27.8 |
|
|
|
15.4 |
|
|
|
81 |
% |
|
|
27.8 |
|
|
|
28.7 |
|
|
|
(3 |
)% |
- 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.
- Defined as the amount of hash rate
that could theoretically be generated if all miners that have been
energized are currently in operation including miners that may be
temporarily offline. Hash rates are estimates based on the
manufacturers' specifications. All figures are rounded.
- Defined as the average hash rate
that was actually generated during the month from all operational
miners. All figures are estimates and are rounded.
- Defined as the sum of energized
hash rate (see above) and hash rate that has been installed but not
yet energized. Hash rates are estimates based on the manufacturers'
specifications. All figures are rounded.
- These metrics are MaraPool only, do
not include the joint ventures.
In March, Marathon energized approximately 4,000
additional miners (c. 0.4 EH/s). Once the current transition of
9,500 miners from Ellendale to Garden City is complete, Marathon's
operating fleet will increase to approximately 235,000 Bitcoin
miners, theoretically capable of producing 29.8 EH/s. Hash rate
figures are calculated according to the manufacturers'
specifications.
Figure 2: 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 |
|
Mar 2024 |
|
|
Feb 2024 |
|
|
Mar 2024 |
|
|
Feb 2024 |
|
|
Mar 2024 |
|
|
Feb 2024 |
|
|
Mar 2024 |
|
|
Feb 2024 |
|
Owned Operated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Granbury |
|
|
TX |
|
|
Marathon |
|
|
4.2 |
|
|
|
4.2 |
|
|
|
4.2 |
|
|
|
4.2 |
|
|
|
3.2 |
|
|
|
3.4 |
|
|
|
77 |
% |
|
|
82 |
% |
Garden City |
|
|
TX |
|
|
Marathon |
|
|
4.5 |
|
|
|
4.5 |
|
|
|
4.5 |
|
|
|
4.5 |
|
|
|
3.5 |
|
|
|
2.6 |
|
|
|
78 |
% |
|
|
57 |
% |
Kearney |
|
|
NE |
|
|
Marathon |
|
|
1.2 |
|
|
|
0.8 |
|
|
|
1.2 |
|
|
|
0.8 |
|
|
|
0.8 |
|
|
|
0.5 |
|
|
|
67 |
% |
|
|
63 |
% |
Total owned operated |
|
9.9 |
|
|
|
9.5 |
|
|
|
9.9 |
|
|
|
9.5 |
|
|
|
7.5 |
|
|
|
6.5 |
|
|
|
76 |
% |
|
|
68 |
% |
Third-party Hosted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
McCamey |
|
|
TX |
|
|
US Bitcoin |
|
|
7.7 |
|
|
|
7.7 |
|
|
|
7.7 |
|
|
|
7.7 |
|
|
|
6.4 |
|
|
|
6.0 |
|
|
|
83 |
% |
|
|
78 |
% |
Ellendale |
|
|
ND |
|
|
Applied |
|
|
6.5 |
|
|
|
7.8 |
|
|
|
6.5 |
|
|
|
7.8 |
|
|
|
0.9 |
|
|
|
1.8 |
|
|
|
14 |
% |
|
|
23 |
% |
Jamestown |
|
|
ND |
|
|
Applied |
|
|
1.4 |
|
|
|
1.4 |
|
|
|
1.4 |
|
|
|
1.4 |
|
|
|
1.4 |
|
|
|
1.4 |
|
|
|
98 |
% |
|
|
97 |
% |
All Other |
|
|
|
|
|
Various |
|
|
2.3 |
|
|
|
2.3 |
|
|
|
2.3 |
|
|
|
2.3 |
|
|
|
2.0 |
|
|
|
1.9 |
|
|
|
88 |
% |
|
|
84 |
% |
Total third-party hosted |
|
17.9 |
|
|
|
19.2 |
|
|
|
17.9 |
|
|
|
19.2 |
|
|
|
10.7 |
|
|
|
11.1 |
|
|
|
60 |
% |
|
|
58 |
% |
Total |
|
|
|
|
|
|
|
|
27.8 |
|
|
|
28.7 |
|
|
|
27.8 |
|
|
|
28.7 |
|
|
|
18.2 |
|
|
|
17.6 |
|
|
|
65 |
% |
|
|
61 |
% |
As of March 31, 2024 the Company holds a
total of 17,381 unrestricted BTC. Marathon opted to sell 440
bitcoin in March. The Company still intends to sell a portion of
its bitcoin holdings in future periods to support monthly
operations, manage its treasury, and for general corporate
purposes.
Financial Highlights and
UpdatesFigure 3: Financial Highlights
|
|
Year-Over-Year
Comparison |
|
|
Prior Month
Comparison |
|
Metric |
|
3/31/2024 |
|
|
3/31/2023 |
|
|
% Δ |
|
|
3/31/2024 |
|
|
2/29/2024 |
|
|
% Δ |
|
Total Cash, Cash Equivalents &
Restricted Cash ($, in millions) |
|
$ |
324.3 |
|
|
$ |
124.9 |
|
|
|
160 |
% |
|
$ |
324.3 |
|
|
$ |
425.6 |
|
|
|
(24 |
)% |
Unrestricted Cash |
|
|
324.3 |
|
|
|
124.9 |
|
|
|
160 |
% |
|
|
324.3 |
|
|
|
425.6 |
|
|
|
(24 |
)% |
Restricted Cash |
|
|
— |
|
|
|
— |
|
|
|
NA |
|
|
|
— |
|
|
|
— |
|
|
|
NA |
|
Total BTC Holdings (in whole numbers) |
|
|
17,381 |
|
|
|
11,466 |
|
|
|
52 |
% |
|
|
17,381 |
|
|
|
16,930 |
|
|
|
3 |
% |
Unrestricted BTC Holdings |
|
|
17,381 |
|
|
|
11,466 |
|
|
|
52 |
% |
|
|
17,381 |
|
|
|
16,930 |
|
|
|
3 |
% |
Restricted BTC Holdings |
|
|
— |
|
|
|
— |
|
|
|
NA |
|
|
|
— |
|
|
|
— |
|
|
|
NA |
|
Pledged BTC Holdings |
|
|
— |
|
|
|
— |
|
|
|
NA |
|
|
|
— |
|
|
|
— |
|
|
|
NA |
|
Marathon held $324.3 million in cash and cash
equivalents on its balance sheet at month end, all of which was
unrestricted. During March, the combined balance of unrestricted
cash and cash equivalents and bitcoin increased from $1,461.4
million to $1,563.4 million at March 31, 2024. In anticipation
of the next Bitcoin network halving, the Company continues to build
liquidity on the balance sheet to capitalize on strategic
opportunities, including industry consolidation.
Upcoming ConferencesBitcoin Policy SummitApril
9, 2024Washington D.C.
Blockchain Life 2024April 15-16, 2024Dubai, UAE
AmCham Business SummitApril 24-25, 2024Nairobi, Kenya
AIM Summit LondonApril 29-30, 2024London, UK
Recent Announcements
- April 2 - Announces the closing of
its acquisition of a 200-megawatt Bitcoin mining data center
adjacent to a wind farm
- March 26 - Unveils two-phase
immersion cooling system to optimize data center operations
- March 25 - Releases
industry-leading Bitcoin mining firmware and control board
- March 15 - Enters definitive
agreement to acquire 200-megawatt Bitcoin mining data center
adjacent to a wind farm
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, 2023, filed with the SEC on
February 28, 2024. 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 "Forward-Looking
Statements" below.
Forward-Looking Statements This
press release contains forward-looking statements within the
meaning of the federal securities laws. Forward-looking statements
in this press release relate to the expected timing and achievement
of our growth targets, specifically relating to our anticipated
hash rate and exahash growth. You can identify forward-looking
statements by the use of words such as “may,” “will,” “could,”
“anticipate,” “expect,” “intend,” “believe,” “continue,” or the
negative of such terms, or other comparable terminology.
Forward-looking statements include the assumptions underlying or
relating to such statements. The Company has based these
forward-looking statements largely on its current expectations and
projections about future events and trends that we believe may
affect its business, results of operations and financial condition.
The outcomes of the events described in these forward-looking
statements are subject to risks, uncertainties and other factors
described under the heading “Risk Factors” in the reports the
Company files with the Securities and Exchange Commission. The
Company cannot assure you that the events and circumstances
reflected in the forward-looking statements will be achieved or
occur, and actual results could differ materially from those
expressed or implied in the forward-looking statements. The
forward-looking statements made in this press release relate only
to events as of the date of this press release. The Company
undertakes no obligation to update any forward-looking statement to
reflect events or circumstances after the date on which the
statement is made.
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
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