Marathon Digital Holdings Achieves Record Bitcoin Production In Q1 2023
Marathon Digital Holdings, Inc. (NASDAQ:MARA), a leading company in securing and supporting the Bitcoin ecosystem, recently released its unaudited Bitcoin production and miner installation updates for March 2023. Marathon’s chairman and CEO, Fred Thiel, commented that the company has made significant progress in its two main initiatives for the year. These initiatives are to optimize performance and energize the purchased mining rigs to achieve the target of 23 exahashes by mid-2023. Thiel further stated that the company’s operational hash rate increased by 64% in Q1 2023, from 7.0 exahashes to 11.5 exahashes. Improvements in the consistency of the hash rate indicate that technological upgrades implemented by the company have started taking effect.
Marathon, one of the largest listed mining companies in North America, announced that it produced 2,195 bitcoins in the Q1, the highest quarter in the company's history; it currently holds $124.9 million in cash and 11,466 bitcoins; Marathon sold 750 BTCs in March , and intends…
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Q1 Bitcoin Production
As a result of the improved hash rate, the company recorded a record 2,195 bitcoin production in Q1 2023, representing a 41% increase from the previous quarter. In March, Marathon produced a record 825 bitcoins, a 21% increase from February.
Marathon’s financial position has also improved in Q1 2023. The company reduced its debt by $50 million and increased its unrestricted bitcoin holdings by 3,132 BTC. The company exited the quarter with $124.9 million in unrestricted cash and cash equivalents and 11,466 bitcoin, which was valued at approximately $326.5 million on March 31.
S19 XPs to generate 66% Hash Rate
In March, approximately 13,000 of Marathon’s previously installed Bitcoin miners were energized at Applied Digital’s facilities in North Dakota. Out of these, around 9,400 S19 XPs were energized in Ellendale, ND, and about 3,500 S19 XPs were energized in Jamestown, ND. Marathon’s operating fleet consists of approximately 105,200 Bitcoin miners as of April 1, 2023.
Marathon expects that approximately 66% of the company’s hash rate will be generated by S19 XPs once all previously purchased miners are installed. These mining rigs are around 30% more energy-efficient than the previous generation of mining rigs. The company anticipates having approximately 23 EH/s of capacity installed by mid-2023.
Achieving Growth Targets in Mining Operations
Marathon sold 750 BTC during March and plans to sell a portion of its bitcoin holdings in future periods to manage its treasury, support monthly operations, or for general corporate purposes. In response to the March 12 closure of Signature Bank, the company has redistributed its cash among various institutions and no longer holds any deposits at Signature Bank.
Marathon Digital Holdings, Inc. has made significant progress in improving its operational and financial positions in Q1 2023. The company remains optimistic that it can achieve its primary growth targets and establish itself as one of the largest and most energy-efficient Bitcoin mining operations.