MARA Announces Bitcoin Production and Mining Operation Updates for June 2024
Marathon Digital Holdings (NASDAQ: MARA) reported significant updates for June 2024, highlighting a 2% month-over-month increase in the average operational hash rate to 26.3 EH/s and a 10% year-over-year increase in blocks captured by its proprietary mining pool. However, Bitcoin production fell 40% year-over-year to 590 BTC due to the April Halving, despite a slight 4% month-over-month decrease in production. The company holds 18,536 BTC, valued along with cash at $1.4 billion. Operational improvements included a peak hash rate of 28.3 EH/s and notable expansions in immersion cooling technology and international projects, such as a 2-megawatt pilot in Finland for sustainable heating. Financially, MARA saw a 136% year-over-year increase in total cash and equivalents to $268 million, but experienced an 8% month-over-month decline.
- 2% increase in the average operational hash rate month-over-month to 26.3 EH/s.
- 10% increase in blocks captured by MARA's mining pool year-over-year.
- Total cash and BTC holdings valued at $1.4 billion as of June 30, 2024.
- 136% year-over-year increase in total cash and equivalents to $268 million.
- 40% year-over-year decrease in Bitcoin production to 590 BTC.
- 8% month-over-month decline in total cash and equivalents.
Insights
Marathon Digital Holdings' (MARA) most recent operational and financial updates offer critical insights into the company's performance and strategic direction.
From a financial standpoint, MARA's cash and bitcoin holdings are quite noteworthy. The company ended June 2024 with
Despite a year-over-year
However, the Total Cash, Cash Equivalents & Restricted Cash metric decreased by
Overall, the company's fiscal strategy appears robust with a clear emphasis on liquidity and strategic asset management, but the high volatility and operational expenses involved in mining remain key risks.
The growth in MARA's hash rate is a important technical indicator to consider. The company achieved a
The implementation of immersion cooling technology and the deployment of the latest generation hardware are significant advancements. Immersion cooling enhances the efficiency of mining operations by reducing hardware failures and lowering operational costs due to better heat management. These technical improvements are likely to support MARA in achieving its target of 50 EH/s by the end of the year.
Moreover, the company's new 2-megawatt pilot project in Finland to recycle heat from digital asset computing represents an innovative approach to sustainability. Not only does this reduce carbon emissions, but it also offers a practical application of blockchain technology in traditional industries.
Technologically, MARA is making strides that position it well for both operational efficiency and environmental sustainability. However, the success of these initiatives will depend on their scalability and long-term operational viability.
Average Operational Hash Rate Increases
Increased BTC Holdings to 18,536 BTC; Total Cash and BTC of $1.4 B as of June 30, 2024
Fort Lauderdale, FL, July 03, 2024 (GLOBE NEWSWIRE) -- Marathon Digital Holdings, Inc. (NASDAQ: MARA) ("MARA” or the "Company"), a global leader in leveraging digital asset compute to support the energy transformation, today published unaudited bitcoin (“BTC”) production and miner installation updates for June 2024.
Management Commentary
"Due to operational improvements in Ellendale and the facility being fully operational as of the beginning of July, we doubled our average operational hash rate year-over-year in June to 26.3 exahash," said Fred Thiel, MARA’s chairman and CEO. "Our proprietary mining pool outperformed, capturing 158 blocks during the month, a
"Domestically, our team continues to optimize our recently acquired sites with immersion cooling technology and the latest generation hardware. With these advancements and the expansion of our fleet, we remain on track to reach our target of 50 EH/s by the end of this year.
"In our international business, we announced the launch of a 2-megawatt pilot project in Finland to warm a community of 11,000 residents with recycled heat from digital asset computing. Integrating digital asset compute with district heating can reduce carbon emissions, lower costs, and minimize waste heat, leading to enhanced sustainability and economic savings for both industries and end-users. We look forward to expanding our global presence as a leader in leveraging digital asset compute to support the energy transformation."
Operational Highlights and Updates
Figure 1: Operational Highlights
| Year-Over-Year Comparison | Prior Month Comparison | |||||||||||||||||||||||
| Metric | 6/30/2024 | 6/30/2023 | % Δ | 6/30/2024 | 5/31/2024 | % Δ | ||||||||||||||||||
| Bitcoin Produced | 590 | 979 | (40 | )% | 590 | 616 | (4 | )% | ||||||||||||||||
| Average Bitcoin Produced per Day | 19.7 | 32.6 | (40 | )% | 19.7 | 19.9 | (1 | )% | ||||||||||||||||
| Share of available miner rewards 1 | 4.1 | % | 3.5 | % | NA | 4.1 | % | 4.2 | % | NA | ||||||||||||||
| Transaction Fees as % of Total 2 | 6.8 | % | 5.5 | % | NA | 6.8 | % | 6.6 | % | NA | ||||||||||||||
| Number of Blocks Won 2 | 158 | 144 | 10 | % | 158 | 170 | (7 | )% | ||||||||||||||||
| Energized Hash Rate (EH/s) 3 | 31.5 | 17.7 | 78 | % | 31.5 | 29.3 | 8 | % | ||||||||||||||||
| Average Operational Hash Rate (EH/s) 4 | 26.3 | 13.0 | 102 | % | 26.3 | 25.8 | 2 | % | ||||||||||||||||
| Installed Hash Rate (EH/s) 5 | 31.5 | 21.8 | 44 | % | 31.5 | 30.5 | 3 | % | ||||||||||||||||
- Defined as the total amount of block rewards including transaction fees that MARA earned during the period divided by the total amount of block rewards and transaction fees awarded by the Bitcoin network during the period.
- These metrics are MARAPool only and do not include blocks won from joint ventures.
- 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.
In June, MARA energized approximately 13,000 additional miners (c. 2 EH/s). As a result, MARA's operating fleet increased to approximately 250,000 Bitcoin miners capable of producing 31.5 EH/s. In June, MARA achieved a peak overall hash rate of 28.3 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 | Jun 2024 | May 2024 | Jun 2024 | May 2024 | Jun 2024 | May 2024 | Jun 2024 | May 2024 | ||||||||||||||||||||||||||
| Owned Operated | ||||||||||||||||||||||||||||||||||||
| Granbury | TX | MARA | 4.3 | 3.9 | 4.3 | 3.9 | 3.6 | 3.8 | 85 | % | 98 | % | ||||||||||||||||||||||||
| Garden City | TX | MARA | 5.4 | 5.4 | 5.4 | 5.4 | 4.2 | 4.5 | 77 | % | 83 | % | ||||||||||||||||||||||||
| Kearney | NE | MARA | 2.8 | 2.3 | 2.8 | 2.3 | 2.3 | 1.9 | 82 | % | 83 | % | ||||||||||||||||||||||||
| Total owned operated | 12.5 | 11.5 | 12.5 | 11.5 | 10.1 | 10.2 | 81 | % | 89 | % | ||||||||||||||||||||||||||
| Third-party Hosted | ||||||||||||||||||||||||||||||||||||
| McCamey | TX | Hut 8 | 7.6 | 7.6 | 7.6 | 7.6 | 6.7 | 6.4 | 88 | % | 85 | % | ||||||||||||||||||||||||
| Ellendale | ND | Applied | 7.7 | 7.7 | 7.7 | 6.5 | 6.2 | 5.6 | 81 | % | 87 | % | ||||||||||||||||||||||||
| Jamestown | ND | Applied | 1.4 | 1.4 | 1.4 | 1.4 | 1.4 | 1.4 | 98 | % | 98 | % | ||||||||||||||||||||||||
| All Other | Various | 2.3 | 2.3 | 2.3 | 2.3 | 2.1 | 2.2 | 92 | % | 96 | % | |||||||||||||||||||||||||
| Total third-party hosted | 19.0 | 19.0 | 19.0 | 17.8 | 16.4 | 15.6 | 86 | % | 88 | % | ||||||||||||||||||||||||||
| Total | 31.5 | 30.6 | 31.5 | 29.3 | 26.3 | 25.7 | 83 | % | 88 | % | ||||||||||||||||||||||||||
As of June 30, 2024, the Company holds a total of 18,536 unrestricted BTC. MARA opted not to sell any bitcoin in June. 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. The Company also intends to continue strengthening its bitcoin holdings through strategic open-market bitcoin acquisitions and investing in other opportunities to increase its bitcoin yield.
Financial Highlights and Updates
Figure 3: Financial Highlights
| Year-Over-Year Comparison | Prior Month Comparison | |||||||||||||||||||||||
| Metric | 6/30/2024 | 6/30/2023 | % Δ | 6/30/2024 | 5/31/2024 | % Δ | ||||||||||||||||||
| Total Cash, Cash Equivalents & Restricted Cash ($, in millions) | $ | 268.0 | $ | 113.7 | 136 | % | $ | 268.0 | $ | 290.4 | (8 | )% | ||||||||||||
| Unrestricted Cash | 256.0 | 113.7 | 125 | % | 256.0 | 290.4 | (12 | )% | ||||||||||||||||
| Restricted Cash | 12.0 | — | NA | 12.0 | — | NA | ||||||||||||||||||
| Total BTC Holdings (in whole numbers) | 18,536 | 12,538 | 48 | % | 18,536 | 17,857 | 4 | % | ||||||||||||||||
| Unrestricted BTC Holdings | 18,536 | 12,538 | 48 | % | 18,536 | 17,857 | 4 | % | ||||||||||||||||
| Restricted BTC Holdings | — | — | NA | — | — | NA | ||||||||||||||||||
| Pledged BTC Holdings | — | — | NA | — | — | NA | ||||||||||||||||||
MARA held
Recent Announcements
- June 26 - Marathon Digital Holdings Announces Kaspa Mining Operations
- June 20 - Heating with Hashes: Digital Asset Compute Offers a Sustainable Solution for District Heating
- June 5 - Marathon Digital Holdings Announces Bitcoin Production and Mining Operation Updates for May 2024
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 the heading "Risk Factors" in our most recent annual report on Form 10-K, and any other periodic reports that we may file with the U.S. Securities and Exchange Commission (the “SEC”). 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.
The operational highlights and updates presented in this press release pertain solely to our bitcoin mining operations. Detailed information regarding our other operations can be found in our periodic reports filed with the SEC.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. All statements, other than statements of historical fact, included in this press release are forward-looking statements. The words “may,” “will,” “could,” “anticipate,” “expect,” “intend,” “believe,” “continue,” “target” and similar expressions or variations or negatives of these words are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Such forward-looking statements include, among other things, statements related to the expected timing and achievement of our growth targets, specifically relating to our anticipated hash rate and exahash growth. Such forward-looking statements are based on management’s current expectations about future events as of the date hereof and involve many risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. Subsequent events and developments, including actual results or changes in our assumptions, may cause our views to change. We do not undertake to update our forward-looking statements except to the extent required by applicable law. Readers are cautioned not to place undue reliance on such forward-looking statements. All forward-looking statements included herein are expressly qualified in their entirety by these cautionary statements. Our actual results and outcomes could differ materially from those included in these forward-looking statements as a result of various factors, including, but not limited to, the factors set forth under the heading “Risk Factors” in our most recent annual report on Form 10-K, and any other periodic reports that we may file with the SEC.
About MARA
MARA (NASDAQ:MARA) is a global leader in digital asset compute that develops and deploys innovative technologies to build a more sustainable and inclusive future. MARA secures the world’s preeminent blockchain ledger and supports the energy transformation by converting clean, stranded, or otherwise underutilized energy into economic value.
For more information, visit www.mara.com, or follow us on:
Twitter: @MarathonDH
LinkedIn: www.linkedin.com/company/marathon-digital-holdings
Facebook: www.facebook.com/MarathonDigitalHoldings
Instagram: @marathondigitalholdings
MARA Company Contact:
Telephone: 800-804-1690
Email: ir@mara.com
MARA Media Contact:
Email: mara@wachsman.com
FAQ
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