Marathon Digital Holdings Announces Bitcoin Production and Mining Operation Updates for November 2022
06 Dezembro 2022 - 6:05PM
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 November 2022.
Management Commentary“In
November, we strengthened our liquidity position, produced 472
bitcoin, 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 took
proactive measures to reduce our revolver borrowings from $50
million as of November 9 to $30 million as of November 30. The
combination of this debt repayment and our monthly production
increased our unrestricted bitcoin holdings from 1,950 BTC on
November 9 to 4,200 BTC as of November 30, and we ended the month
with $61.7 million in cash on hand.
“Our production in November was negatively
impacted by curtailment at the King Mountain site in Texas. This
increased curtailment was caused by spot market pricing of energy
driven by weather combined with lower bitcoin prices. We are
working on optimizing curtailment strategies and site operations
with the new operator and expect King Mountain’s productivity to
improve in the coming months.
“While Applied Digital awaits regulatory
approval to energize their facility in Garden City, Texas,
construction of facilities and installations of mining servers
remain underway according to the most publicly available
information. Simultaneously, Marathon continues to execute on its
strategy to improve how efficiently we convert electricity into
value. We recently launched an immersion pilot program, and our
first 14,000 S19 XPs, which are 30% more energy efficient than the
prior generation of servers, were successfully installed in Applied
Digital’s facility in Garden City, Texas during November.
“We remain confident that Marathon is
well-positioned to continue scaling into one of the largest and
most energy-efficient operators in the industry.”
Recent Highlights
- Produced 472 BTC in November 2022
and 1,087 BTC quarter-to-date as of December 1
- As of December 1, operating 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 pending
energization
- Depending on Applied Digital’s
energization timeline, the Company expects to have between 7.0 EH/s
and 9.0 EH/s online by December 31, 2022
- Year-to-date through November 30,
2022, produced 3,669 BTC, a 35% increase over the same time period
in the prior year
- Assessed that approximately $22
million of the remaining $42 million in deposits with Compute North
are recoverable, while the recoverability of the remainder remains
unknown subject to the bankruptcy proceedings
- Reduced revolver borrowings from
$50 million as of November 9 to $30 million as of November 30
- Unrestricted bitcoin holdings on
November 30, 2022 were approximately 4,200 BTC with a fair market
value of approximately $72.1 million
- Total bitcoin holdings increased to
11,757 BTC as of November 30, 2022
- Unrestricted
cash on hand was approximately $61.7 million at November 30,
2022
Compute North Deposits UpdateAs
previously disclosed, the Company had paid approximately $50
million in operating deposits to 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 were likely fully
recoverable as deposits. The recoverability of the remaining $20
million in deposits and other amounts previously impaired remain
subject to the bankruptcy proceedings, and the Company is
continuing to work with various parties involved to determine their
ultimate recoverability.
Miner Energization and Installations
UpdatesAccording to the latest information made publicly
available, construction of facilities and installation of miners at
Applied Digital’s data center sites remain underway as Applied
Digital awaits regulatory approval to energize its newest
facilities.
In November, Marathon began an immersion-cooled
pilot project. Immersion is the process of submerging mining
servers into non-conducive fluid and may have several benefits
compared to traditional air-cooled solutions, including reduced
maintenance and downtime, the potential to “overclock” a mining
server, etc. Based on the outcome of this initial project, Marathon
may allocate additional resources to immersion cooling.
As of November 30, approximately 14,000 of the
Company’s previously purchased S19 XPs were pending energization
after being successfully installed in Texas. Once all of Marathon’s
previously purchased miners are installed, approximately 66% of the
Company’s hash rate is expected to be generated by S19 XPs, which
are approximately 30% more energy efficient that the prior
generation of 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. 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
2022. 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, while remaining asset light.
Marathon Digital
Holdings Company Contact: Telephone:
800-804-1690Email: ir@mara.com
Marathon Digital (NASDAQ:MARA)
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