Marathon Digital Holdings has announced Bitcoin production and mining operation updates for November 2022

Marathon Digital Holdings, Inc.

472 BTC produced in November 2022 and 1,087 BTC quarter to date

Raised unlimited cash to $61.7 million and unlimited Bitcoin holdings to 4,200 BTC as of November 30

The pilot began immersion deployment and installed approximately 14,000 S19 XPs in Texas

LAS VEGAS, Dec. 06, 2022 (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 November 2022.

Management commentary
“In November, we strengthened our liquidity position, produced 472 bitcoins, and began improving the efficiency of our mining operations with new technologies,” said Fred Thiel, Marathon’s chairman and CEO. “Given the current macro environment, we have taken proactive steps to reduce our revolver debt from $50 million on November 9th to $30 million. The combination of paying this debt and our monthly production has increased our unlimited bitcoin reserves from 1,950 BTC. From November 9th to November 30th 4200 BTC and we ended the month with $61.7 million cash on hand.

“In November, our production was negatively affected by the curtailment at the King Mountain site in Texas. This increased contraction is due to weather-driven energy spot market prices combined with low bitcoin prices. We are working with the new operator to optimize curtailment strategies and site operations and expect King Mountain’s productivity to improve in the coming months.

“As Applied Digital awaits regulatory approval to power its facilities in Garden City, Texas, construction of the facilities and installation of mining servers is reportedly ongoing. At the same time, Marathon continues to implement its strategy to improve how we turn electricity into value. We recently launched an immersion pilot program and our first 14,000 S19 XPs, which are 30% more energy efficient than previous generation servers, were successfully installed at Applied Digital’s facility in Garden City, Texas during November.

“We are confident that Marathon is well positioned to continue becoming one of the largest and most energy efficient operators in the industry.”

Latest highlights

  • 472 BTC produced in November 2022 and 1087 BTC as of December 1

  • As of December 1st, the mining fleet consisted of approximately 69,000 active miners capable of producing approximately 7.0 EH/s.

  • 14,000 S19 XPs were installed in Garden City, TX in November and are currently awaiting power-up.

  • The Company expects to have between 7.0 EH/s and 9.0 EH/s online by December 31, 2022, depending on Applied Digital’s energization schedule.

  • By November 30, 2022, it produced 3,669 BTC, a 35% increase compared to the same period last year.

  • It has been estimated that about $22 million of the remaining $42 million in deposits with Compute North is recoverable, with the rest remaining undisclosed in bankruptcy proceedings.

  • Revolver debt was reduced from $50 million on November 9 to $30 million on November 30

  • As of November 30, 2022, unrestricted bitcoin holdings were approximately 4,200 BTC with a fair market value of approximately $72.1 million.

  • As of November 30, 2022, the total volume of bitcoins increased to 11,757 BTC

  • Unrestricted cash on hand at November 30, 2022 was approximately $61.7 million

Calculate Northern Deposits Update
As previously disclosed, the Company paid approximately $50 million in operating deposits to the Compute North entities. To date, the Company has written off approximately $8 million of these deposits. In November, the Company determined that approximately $22 million of the remaining $42 million was fully recoverable as a deposit. The recovery of the remaining $20 million in deposits and other previously impaired amounts remains subject to bankruptcy proceedings, and the Company continues to work with the various parties involved to determine their eventual recovery.

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 November, Marathon launched an immersion-cooled pilot project. Immersion is the process of immersing mining servers in a non-conductive liquid and has several advantages over traditional air-cooled solutions, including reduced maintenance and downtime, the potential to “overclock” the mining server, and more. Based on the result of this. an initial project, Marathon may devote additional resources to immersion cooling.

As of November 30, approximately 14,000 of the Company’s previously purchased S19 XPs were waiting to be energized after being successfully installed in Texas. 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.

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. 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 regarding financial metrics assume mining difficulty levels as of November 2022. See “Forward-Looking Statements” below.

Forward-Looking Statements
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.

Marathon Digital Holdings Company Contact:
Phone: 800-804-1690

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