Marathon Digital Holdings, Inc. (NASDAQ: MARA), a leader in securing the Bitcoin ecosystem, has released its January 2024 operational updates, highlighting strategic expansions and challenges in bitcoin production.
Key Operational Updates
- Closed Generate Capital Acquisition: Positions the company to reach 50 EH/s hash rate capacity.
- Agreement with Hut8: Full control of new mining sites expected by April 30, 2024.
- Increased Energized Hash Rate: 7% month-over-month growth to 26.4 EH/s.
- BTC Holdings: 15,741 BTC, with total cash and BTC valued at $1.0 billion as of January 31, 2024.
Management Insights
Fred Thiel, Marathon’s Chairman and CEO, addressed January’s production challenges:
"Weather-related curtailments and equipment failures reduced our average operational hash rate to 19.3 EH/s. Despite producing 1,084 BTC (a 42% decline from December), we’re resolving disruptions and anticipate improved performance in coming weeks."
International Progress:
- Abu Dhabi joint venture now fully operational (250 MW immersion cooling, ~100% uptime).
- Paraguay deployment advancing, with 0.3 EH/s live and 1.1 EH/s expected by Q2 2024.
Domestic Expansion:
- Terminated Hut8’s operation of Granbury, TX, and Kearney, NE sites to assume direct control by April 30.
- Added 0.9 EH/s capacity in Granbury, with further optimizations planned.
👉 Explore Bitcoin mining innovations
Operational Metrics (January 2024 vs. Prior Periods)
| Metric | Jan 2024 | Dec 2023 | % Change | Jan 2023 | % Change (YoY) |
|---|---|---|---|---|---|
| Bitcoin Produced | 1,084 | 1,853 | -42% | 687 | +58% |
| Energized Hash Rate (EH/s) | 26.4 | 24.7 | +7% | 7.3 | +262% |
| Avg Operational Hash Rate | 19.3 | 22.4 | -14% | 5.7 | +239% |
| Transaction Fees (% total) | 11.4% | 21.8% | -48% | 2.3% | +396% |
Site-Specific Performance:
- McCamey, TX: 82% utilization (7.7 EH/s).
- Ellendale, ND: 51% utilization due to weather disruptions (7.8 EH/s).
Financial Highlights
- Cash Reserves: $318.9 million (unrestricted).
- BTC Purchases: Added 183.5 BTC at an average of $39,738.
- Total Liquidity: $988.7 million (cash + BTC).
Strategic Focus: Building liquidity for Bitcoin halving opportunities and industry consolidation.
FAQs
Q: Why did Marathon’s bitcoin production drop in January?
A: Weather-related curtailments and equipment failures reduced operational hash rate by 14%.
Q: What are Marathon’s international expansion plans?
A: Fully operational 250 MW Abu Dhabi site and 1.1 EH/s Paraguay deployment by Q2 2024.
Q: How does Marathon plan to reduce mining costs?
A: Direct operation of Granbury/Kearney sites aims to lower fees and improve energy management.
👉 Learn about Bitcoin’s future
Forward-Looking Statement: This release contains projections subject to risks detailed in SEC filings. Marathon assumes no obligation to update forward-looking statements.
For investor inquiries: [email protected] | Media: [email protected].
Released: February 5, 2024