Marathon Digital Holdings Announces Bitcoin Production and Mining Operation Updates for May 2024
Marathon Digital Holdings reported a 22% increase in its average operational hash rate for May 2024, reaching 25.7 EH/s. The company produced 616 BTC, a decline of 27% from April, but increased its share of miner rewards to 4.2%. Marathon's total BTC holdings rose to 17,857, with a combined cash and BTC value of $1.5 billion. Operational improvements at the Ellendale facility and international agreements in Kenya were highlighted. Despite reduced BTC production, Marathon remains on track for a 50 EH/s target by year-end. Financially, the company saw a significant rise in cash and BTC holdings, with unrestricted cash at $290.4 million.
- 22% increase in average operational hash rate to 25.7 EH/s.
- Total BTC holdings increased to 17,857 BTC.
- Combined cash and BTC value of $1.5 billion as of May 31, 2024.
- Significant operational improvements at the Ellendale facility.
- International agreement with the Ministry of Energy and Petroleum of the Republic of Kenya.
- Unrestricted cash rose to $290.4 million, a 198% increase year-over-year.
- 27% decline in BTC production from April to 616 BTC.
- 51% year-over-year decrease in BTC produced, from 1,245 to 616.
- Transaction fees as a percentage of total revenue declined from 16.2% in April to 6.6% in May.
- Potential risk in relying on future BTC sales to support operations.
Insights
Marathon Digital Holdings' latest report for May 2024 shows a substantial increase in operational hash rate by 22% month-over-month, reaching 25.7 EH/s. This is significant in the cryptocurrency mining industry, as hash rate directly correlates with mining power and profitability. Additionally, the company’s cash and BTC holdings have increased notably to
The company's average bitcoin production declined by 27% compared to April, primarily due to the April Halving event. However, Marathon managed to win more blocks, demonstrating operational efficiency. This resilience is important as it shows the company's adaptability to blockchain's evolving difficulty levels.
For retail investors, this report showcases strong operational metrics and a stable financial footing. It is worth noting that Marathon’s expansion and technological advancements, such as immersion cooling, could continue to improve efficiency and profitability. However, fluctuations in bitcoin prices and mining difficulty levels remain external risks.
Marathon's implementation of immersion cooling technology and the use of the latest generation hardware is noteworthy. Immersion cooling is a method where electronic components, including servers and miners, are submerged in a thermally, but not electrically, conductive liquid to improve cooling and enhance performance. This is particularly beneficial in high-density computing environments like bitcoin mining.
The increased efficiency from these technological improvements can result in significant cost savings and improved hash rates. The Ellendale facility's operational improvements and the optimization efforts at other recently acquired sites are integral to Marathon’s strategy to enhance their productivity. This technological edge could bolster Marathon’s competitive standing in the long term.
Retail investors should understand that while the initial investment in such technology can be high, the long-term benefits include reduced operational costs and better performance.
Marathon Digital's expansion into international markets, particularly their agreement with Kenya's Ministry of Energy and Petroleum, marks a strategic move towards global diversification. This aligns with their goal to have 50% of revenues coming from overseas by 2028. Such diversification can mitigate the risks associated with dependency on a single market and leverage opportunities in emerging markets.
Furthermore, the collaboration with sovereign wealth funds in the Middle East and the pilot project in Paraguay indicate a proactive approach to exploring new avenues and partnerships. These international ventures could not only contribute to revenue growth but also help in positioning Marathon as a global leader in digital asset compute supporting energy transformation.
For investors, this global expansion signifies potential revenue stability and growth. However, they should also be aware of the regulatory and operational challenges that can arise from entering new markets.
- Average Operational Hash Rate Increases
22% M/M to 25.7 EH/s - Increased BTC Holdings to 17,857 BTC; Total Cash and BTC of $1.5 B as of May 31, 2024
Fort Lauderdale, FL, June 05, 2024 (GLOBE NEWSWIRE) -- Marathon Digital Holdings, Inc. (NASDAQ: MARA) ("Marathon" 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 May 2024.
Management Commentary
"The strength of our MARA pool was evident in May as we achieved a noteworthy
"Domestically, our Ellendale facility’s operational improvements are yielding positive results, and 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. Notably, we raised our average operational hash rate during May to 25.7 EH/s, a
"On the international front, we recently announced an agreement with the Ministry of Energy and Petroleum of the Republic of Kenya to support the utilization of energy and to optimize renewable energy projects across the country. While we have worked with sovereign wealth funds in the Middle East to optimize their energy infrastructure and launched a pilot project in Paraguay, this is the first time we have directly collaborated with a government to enhance their energy infrastructure. We aim to have
Operational Highlights and Updates
Figure 1: Operational Highlights
| Year-Over-Year Comparison | Prior Month Comparison | |||||||||||||||||||||||
| Metric | 5/31/2024 | 5/31/2023 | % Δ | 5/31/2024 | 4/30/2024 | % Δ | ||||||||||||||||||
| Bitcoin Produced | 616 | 1,245 | (51 | )% | 616 | 850 | (27 | )% | ||||||||||||||||
| Average Bitcoin Produced per Day | 19.9 | 40.2 | (51 | )% | 19.9 | 28.3 | (30 | )% | ||||||||||||||||
| Share of available miner rewards 1 | 4.2 | % | 3.7 | % | NA | 4.2 | % | 3.2 | % | NA | ||||||||||||||
| Transaction Fees as % of Total 5 | 6.6 | % | 12.9 | % | NA | 6.6 | % | 16.2 | % | NA | ||||||||||||||
| Number of Blocks Won 5 | 170 | 171 | (1 | )% | 170 | 129 | 32 | % | ||||||||||||||||
| Energized Hash Rate (EH/s) 2 | 29.3 | 15.2 | 93 | % | 29.3 | 29.9 | (2 | )% | ||||||||||||||||
| Average Operational Hash Rate (EH/s) 3 | 25.7 | 12.5 | 106 | % | 25.7 | 21.1 | 22 | % | ||||||||||||||||
| Installed Hash Rate (EH/s) 4 | 30.6 | 20.1 | 52 | % | 30.6 | 29.9 | 2 | % | ||||||||||||||||
- 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 May, Marathon energized approximately 5,000 additional miners (c. 0.7 EH/s). Approximately 9,000 miners have been reinstalled at the Ellendale facility, awaiting a return to full energization. As a result, Marathon's operating fleet increased to approximately 246,000 Bitcoin miners theoretically capable of producing 30.6 EH/s, with 237,000 miners (c. 29.3 EH/s) fully operational. In May, Marathon achieved a peak overall hash rate of 28.1 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 | May 2024 | Apr 2024 | May 2024 | Apr 2024 | May 2024 | Apr 2024 | May 2024 | Apr 2024 | ||||||||||||||||||||||||||
| Owned Operated | ||||||||||||||||||||||||||||||||||||
| Granbury | TX | Marathon | 3.9 | 4.4 | 3.9 | 4.4 | 3.8 | 3.6 | 98 | % | 82 | % | ||||||||||||||||||||||||
| Garden City | TX | Marathon | 5.4 | 5.8 | 5.4 | 5.8 | 4.5 | 4.6 | 83 | % | 79 | % | ||||||||||||||||||||||||
| Kearney | NE | Marathon | 2.3 | 1.9 | 2.3 | 1.9 | 1.9 | 1.2 | 83 | % | 63 | % | ||||||||||||||||||||||||
| Total owned operated | 11.5 | 12.1 | 11.5 | 12.1 | 10.2 | 9.4 | 89 | % | 78 | % | ||||||||||||||||||||||||||
| Third-party Hosted | ||||||||||||||||||||||||||||||||||||
| McCamey | TX | Hut 8 | 7.6 | 7.6 | 7.6 | 7.6 | 6.4 | 6.2 | 85 | % | 82 | % | ||||||||||||||||||||||||
| Ellendale | ND | Applied | 7.7 | 6.5 | 6.5 | 6.5 | 5.6 | 1.9 | 87 | % | 29 | % | ||||||||||||||||||||||||
| Jamestown | ND | Applied | 1.4 | 1.4 | 1.4 | 1.4 | 1.4 | 1.4 | 98 | % | 99 | % | ||||||||||||||||||||||||
| All Other | Various | 2.3 | 2.3 | 2.3 | 2.3 | 2.2 | 2.2 | 96 | % | 96 | % | |||||||||||||||||||||||||
| Total third-party hosted | 19.0 | 17.8 | 17.8 | 17.8 | 15.6 | 11.7 | 88 | % | 66 | % | ||||||||||||||||||||||||||
| Total | 30.6 | 29.9 | 29.3 | 29.9 | 25.7 | 21.1 | 88 | % | 71 | % | ||||||||||||||||||||||||||
As of May 31, 2024 the Company holds a total of 17,857 unrestricted BTC. Marathon opted to sell 390 bitcoin in May. 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 Updates
Figure 3: Financial Highlights
| Year-Over-Year Comparison | Prior Month Comparison | |||||||||||||||||||||||
| Metric | 5/31/2024 | 5/31/2023 | % Δ | 5/31/2024 | 4/30/2024 | % Δ | ||||||||||||||||||
| Total Cash, Cash Equivalents & Restricted Cash ($, in millions) | $ | 290.4 | $ | 97.3 | 198 | % | $ | 290.4 | $ | 145.3 | 100 | % | ||||||||||||
| Unrestricted Cash | 290.4 | 97.3 | 198 | % | 290.4 | 133.3 | 118 | % | ||||||||||||||||
| Restricted Cash | — | — | NA | — | 12.0 | (100 | )% | |||||||||||||||||
| Total BTC Holdings (in whole numbers) | 17,857 | 12,259 | 46 | % | 17,857 | 17,631 | 1 | % | ||||||||||||||||
| Unrestricted BTC Holdings | 17,857 | 12,259 | 46 | % | 17,857 | 17,631 | 1 | % | ||||||||||||||||
| Restricted BTC Holdings | — | — | NA | — | — | NA | ||||||||||||||||||
| Pledged BTC Holdings | — | — | NA | — | — | NA | ||||||||||||||||||
Marathon held
Recent Announcements
- June 3 - Marathon Digital Holdings' 2024 proxy vote explained
- May 24 - Enters into agreement with the Ministry of Energy and Petroleum of the Republic of Kenya to enhance Kenya's energy sector
- May 9 - Reports first quarter 2024 results
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 Digital Holdings (NASDAQ:MARA) is a global leader in digital asset compute that develops and deploys innovative technologies to build a more sustainable and inclusive future. Marathon 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
Marathon Digital Holdings Company Contact:
Telephone: 800-804-1690
Email: ir@mara.com
Marathon Digital Holdings Media Contact:
Email: marathon@wachsman.com
FAQ
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