Marathon Road up to 23 EH/s
– We have achieved a new record in quarterly BTC mining
– 475 BTC produced in December 2022, 1562 BTC in Q4 2022 and 4144 BTC in FY2022
– Increased unlimited cash to $103.7 million and unlimited bitcoin holdings to 7,815 BTC as of December 31
LAS VEGAS, January 05, 2023 (GLOBE NEWSWIRE) Marathon Digital Holdings, Inc. (NASDAQ:MARA) (“Marathon” or “Company”)the leader in supporting and securing the Bitcoin ecosystem, today published unverified bitcoin (“BTC”) production and miner setup updates for December 2022.
“In 2022, we made significant progress in increasing our hash rate while transitioning to more sustainable energy sources,” said Fred Thiel, Marathon’s chairman and CEO. “Despite the challenges at the beginning of the year, we have increased our hash rate to 7.0 exahashes for the second time in a year, most of which is currently located at the King Mountain wind farm in West Texas. We ended the year with one of our most productive quarters to date, generating 1,562 bitcoins in the fourth quarter.
“In December, we expanded our contract with Applied Digital to deploy approximately 12,000 S19 XPs at our Jamestown, North Dakota facility, which are approximately 30% more energy efficient than previous generation servers. This site is now up and running and we expect miners to be online within the next month. Miner installation continues in Garden City as we now have approximately 2.1 exahashes installed and pending power-up.
“We have also taken proactive measures to strengthen our liquidity position and improve the performance of our mining fleet. Given the macroeconomic uncertainty heading into 2023, we have decided to pay in full the outstanding balances under our revolving credit facility. This freed up bitcoin previously held as collateral and increased our unlimited bitcoin reserves from 4,200 BTC on November 30 to 7,815 BTC on December 31 (approximately $129.3 million). We ended the year with $103.7 million in cash.
“During December, we tested overclocking and underclocking servers and began exploring two-phase immersion cooling systems. We also continued to work with the new operator of the King Mountain field on a downsizing strategy to improve operations and optimize production. These efforts enable us to further develop our competitive advantages and become a more efficient and sustainable business as we continue to grow.
“Going into 2023, we are confident in our ability to make Marathon one of the largest and most energy-efficient Bitcoin mining operations globally. We have thousands of miners ready to power up in the coming months, and we expect to more than triple our current production capacity to around 23 exahas by mid-year.”
475 BTC produced in December 2022 and 1562 BTC in Q4 2022
In FY2022, 4,144 BTC were produced, a 30% increase from the 3,197 BTC produced in FY2021.
As of January 1st, the mining fleet consisted of approximately 69,000 active miners capable of producing approximately 7.0 EH/s.
2.1 EH/s currently awaiting energization after installing 1000 S19 XPs in December
The Company expects to have between 12.0 EH/s and 15.0 EH/s online by March 31, 2023, depending on Applied Digital’s energization schedule.
Revolver debt reduced from $30 million on November 30 to $0 on December 31, 2022
On December 31, 2022, the fair market value of unrestricted bitcoins was approximately 7,815 BTC, which is approximately $129.3 million.
Total Bitcoin Reserves Rise to 12,232 BTC as of December 31, 2022
Unrestricted cash on hand at December 31, 2022 was approximately $103.7 million.
In November, Marathon launched an immersion-cooled pilot project, which involved immersing its Bitcoin mining servers in a dielectric fluid, to determine if the Company could improve the efficiency and/or performance of its operations. In December, the Marathon team successfully increased the hash rate of the S19 J Pro by 20%, while reducing its power consumption by approximately 4% on a per-hash basis. The company has also increased the hash rate of the S19 XP by 20%, slightly increasing the number of joules per terahash from 21.5 to 23.7 joules.
Marathon is constantly looking for ways to stay ahead of the technology curve, and our latest study looks at the potential benefits of two-phase immersion. Our preliminary findings indicate that this technology can reduce server capital costs by approximately 10% compared to traditional air-cooled units and approximately 7% compared to single-phase immersion systems. This is achieved by eliminating the need for aluminum chassis, heat sync and other parts no longer required in two-phase immersion cooling. In addition, energy consumption can be reduced by about 7% compared to single-phase immersion systems, because two-phase immersion increases the heat density by 2.5 times and allows more servers to be tightly connected to each other.
While it remains to be seen whether such improvements in performance can be consistently replicated and implemented at scale, the Company is encouraged by these initial results and their potential to enhance Marathon’s competitive advantage.
Miner Energization and Installation Updates
According to the latest publicly available information, construction of facilities and installation of miners at Applied Digital’s data center sites continues as Applied Digital awaits regulatory approval to launch its newest facilities.
In December, Marathon secured an additional 33 megawatts of hosting capacity with Applied Digital at its facility in Jamestown, North Dakota. As a result of this new arrangement, the Company expects to deploy approximately 12,000 S19 XPs next month as this site is fully established and has the necessary power supply requirements.
As of December 31st, Marathon’s operational fleet consists of approximately 69,000 bitcoin servers, theoretically capable of producing approximately 7.0 EH/s when operating at full capacity. An additional 2.1 EH/s are currently waiting to be energized after an additional 1,000 S19 XPs were successfully installed in Texas during December.
After installing all of Marathon’s previously purchased miners, approximately 66% of the Company’s hash rate is expected to be generated by S19 XPs, which is approximately 30% more energy efficient than previous generation mining servers. The company still expects to install about 23 EH/s of capacity by mid-2023.
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. In that event, the value of our securities may decline and you may lose some or all of your investment. The risks and uncertainties we describe are not the only ones we face. Additional risks not currently known to us or that we consider immaterial may also harm 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 predict future results. Future changes in the network-wide mining difficulty or Bitcoin hash rate could also significantly affect the future performance of Marathon’s bitcoin production. Additionally, all discussions of financial performance assume mining difficulty levels as of December 2022. See “Forward-Looking Statements” below.
Statements 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 defined using words. “may,” “will,” “plan,” “should,” “expect,” “estimate,” “estimate,” “proceed” or comparable terminology. Such forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which the Company cannot predict with certainty, and some of which the Company cannot even predict, and which may cause actual results to differ materially from those projected. he suggested. Readers are cautioned not to place undue reliance on these forward-looking statements and are urged to consider the factors listed above, along with additional factors, under the heading “Risk Factors” in the Company’s accompanying Annual Reports on Form 10-K. or as amended by the Company’s Quarterly Reports on Form 10-Q. The Company undertakes no obligation to update or supplement any forward-looking statements that may prove untrue, whether due to subsequent events, new information or otherwise.
About Marathon Digital Holdings
Marathon is a digital asset technology company focused on supporting and securing the Bitcoin ecosystem. The company is currently in the process of becoming one of the largest and most stable Bitcoin mining operations in North America, while being asset light.
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