Nasdaq-listed Bitcoin mining firm Marathon Digital attributed the decline in August’s production to the extreme weather conditions. The high heat levels experienced across Texas led to the 9% plunge in Bitcoin production in August from July’s units.
The publicly traded company revealed that the sudden decline in Bitcoin units arose from the temporary shutdowns of its Texas-based mining operations following extreme heat conditions. The mining firm that trades under the ticker symbol MARA indicated that it realized 1072 Bitcoins in August. The output marked a 9% decline from July.
Texas Heat Conditions Hinder Bitcoin Production
Marathon chief executive Fred Thiel indicated that the decreased Bitcoins arose from the increased curtailment measures enforced in the Lone Star State. The executive added that the record-high temperatures eroded the progress realized by Marathon Digital towards bolstering its operational hash rate.
Although Marathon registered a month-over-month decline, its efforts to optimize operations are paying off, as it reported substantial growth relative to the 2022 performance. A review of Marathon’s performance shows its August 2022 production averaged 5.9 Bitcoin units daily. The previous month’s production averaged 34.3 bitcoins, a 477% surge in the daily output.
Marathon Digital’s Tuesday, September 5 tweet update indicated that it secured miners contributing an additional 5 EH/s. The year-to-date production hit 7368 bitcoins. The firm tweet showed that Marathon mining had unrestricted cash and Bitcoin valued at $445 million.
Marathon Garners Operational and Installed Hashrate Growth
Marathon’s devotion to optimizing operations led to a 2% month-over-month increment for the US operational hash rate to 19.1 EH/s. The mining company attributes the operational and hashrate uptrend to the timely replacement of aging Bitmain S19 J Pro rigs with modern and efficient S19 XPs miners.
Marathon Tuesday’s update indicated that the mining firms await to conclude paperwork for the Garden City facility. The new Texas facility targets enhancing the miner’s operational capabilities.
The mining firm indicated it met the 23 EH/s domestic growth target for the installed hash rate. Thiel indicated that the anticipated hash rate estimates 30 EH/s when fully deployed. The figure aggregates 2 EH/s for production outside the US and 5 EH/s contracted capacity.
Marathon statement revealed that the mining firm unveiled a joint venture in early 2023 located in Abu Dhabi. The facility yielded 50 Bitcoins in its August production, where Marathon claimed 10 BTCs.
The Abu Dhabi facility realized an operational hash rate of 1.5 EH/s. Marathon is targeting to scale operations to 7.0 EH/s before the onset of 2024. The chief executive observed that the firm seeks to scale its presence in Africa, Asia and Latin America.
Thiel confessed that Marathon considers that Latin America, Africa and Asia present interesting opportunities worth pursuing. He admitted that the US would be in a split scenario on opportunities emerging in the rest of the world.
Marathon’s Balance Grows by Over 100%
A review of Marathon’s stockpile shows that the mining firm had accumulated 13286 bitcoins, where 13111 units were unrestricted. The firm revealed that it disposed of 750 BTC and intends to sell a batch of the current Bitcoin holdings.
The firm indicated that selling Bitcoins aims to raise finances needed to support its monthly operations, treasury management and fulfil corporate purposes. Also, the firm admitted allocating a portion of the Bitcoin holdings towards fulfilling the treasury activities.
The Las Vegas-headquartered mining firm held $111.2 million in cash and equivalents. The Nevada firm boosts a combined balance of $445.5 million in unrestricted Bitcoin and cash. The balance estimates over 100% of the $201.5 million held in August 2022.
Marathon Digital Market Review
A review of Marathon Digital’s stock shows that the mining firm replicated the downtrend witnessed across the industry. It replicated the 5% decline in Riot Platforms share price currently exchanging hands at $10.76.
Marathon price hovers around $11.56, translating to a 4% decline. The downtrend leaves Marathon’s market capitalization holed at $2.01 billion. It is prudent to watch over the development in the Bitcoin mining segment, considering that Marathon had earlier tested a high of $11.93, though it also hit $11.32.
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