Bitcoin Miners Ramp Up Production Ahead of Halving

In early April, mining companies reported their performance results for the previous month. ForkLog has compiled the key figures in one report.

Marathon Digital Holdings

In March, Marathon Digital Holdings produced 894 BTC—an increase of 7% compared to the previous month.

According to the press release, the hash rate fell by 3% to 27.8 EH/s. The average operational metric for the past month increased by 4% to 18.3 EH/s.

The company’s CEO, Fred Thiel, explained that during the first quarter, production was affected by equipment failures, power line maintenance, and weather-related power consumption reductions at several facilities. 

“[…] we intend to continue developing our bitcoin mining project portfolio, which will grow to approximately 1.1 GW, distributed across 11 sites on three continents, and use our recently announced technological innovations, such as a two-phase immersion cooling system, to optimize performance and expand our positions,” noted Thiel.

As of March 31, 2024, Marathon held 17,381 BTC. The firm sold 440 BTC and confirmed its intention to liquidate part of its digital gold assets in the future “to support monthly operations, treasury management, and general corporate purposes.”

In March, Marathon Digital Holdings announced the acquisition of a 200 MW data center in Garden City, Texas, from Applied Digital Corporation. The deal is valued at $87.3 million.

Argo Blockchain

In the first month of spring, Argo Blockchain generated 103 BTC (3.3 BTC per day). The company noted a 5% increase compared to the previous period, despite the increase in mining difficulty.   

Revenue amounted to $7 million—55% more than in February. As of March 31, the company held 26 BTC.

In March, Argo Blockchain sold a data center in Mirabel, Quebec, Canada, and moved equipment to Baie-Comeau, Quebec. According to the press release, the process had little impact on the company’s operations.

Riot Platforms

Last month, Riot Platforms mined 425 BTC. This figure is 2% higher than in February and 39% lower than in March 2023.

The company holds 8,490 BTC. As of the end of the month, the hash rate is estimated at 12.4 EH/s.

“March was a key month for Riot as we approach the start of operations at our new facility in Corsicana. The first building is expected to open in mid-April 2024, adding an anticipated 3.7 EH/s to our hash rate,” noted CEO Jason Les.

The overall performance is planned to reach 31 EH/s by the end of the year. In 2025, the figure is expected to grow to 41 EH/s.

HIVE Blockchain

HIVE Blockchain Technologies produced 224 BTC in March (an average of 7.2 BTC per day). At the end of the month, the mining company held 2,287 BTC—7% more than in January.

The hash rate was 4.7 EH/s, including the GPU park’s capacity. This figure was 13% higher than in the previous period.

“This continued growth aligns with the company’s strategy to pursue HODL in anticipation of increased demand for [the first cryptocurrency] as an alternative asset class, as evidenced by the strong inflows into the spot bitcoin ETF,” the statement said.

President and CEO Aydin Kilic recalled the integration of Antminer S21 into the fleet. According to him, 2,000 devices should be connected before the halving, scheduled for April 20. 

An additional 3,000 miners will be delivered by June, with HIVE receiving a total of 5,095 machines over the next three months. Kilic estimates the total hash rate will reach 5.5 EH/s.

Bitfarms

In March, Bitfarms produced 286 BTC compared to 300 BTC in February (-5%). At the end of the month, the hash rate was 6.5 EH/s. 

The decline in production at Bitfarms was attributed to participation in energy consumption reduction programs to stabilize the grid, maintenance of power plants in Argentina, and downtime related to equipment upgrades.

The company sold 284 BTC, generating $19.2 million. The number of bitcoins held is 806 (approximately $56.7 million as of March 31).

In March, the company acquired 51,908 Antminer T21. The firm exercised an option for 28,000 Antminer T21 and additionally purchased 19,280 similar miners at $14 per TH/s. The order also included 3,888 Antminer S21 and 740 units of S21 hydro at $17.5 per TH/s. 

Hut 8 Mining

In March, Hut 8 Mining produced 231 BTC compared to 292 BTC in February. At the end of the month, the firm held 9,102 BTC.

The total hash rate under management was 25.5 EH/s, with its own at 5.4 EH/s.

According to the report, on March 6, the company closed its Drumheller facility in Alberta, Canada. Some equipment was relocated to Medicine Hat, Alberta. 

In March, Hut 8 CEO Asher Genut ruled out a new wave of bitcoin miner bankruptcies. He stated that in 2022, most financial problems in the sector were due to excessive debt and unpreparedness for rising electricity prices. Since then, companies have relied less on leverage and more on equity financing to grow their businesses.  

Bit Digital

Bit Digital mined 136.4 BTC in March—6% more than in the previous period. As of the end of the month, the firm’s hash rate was approximately 2.76 EH/s. 

Bit Digital’s treasury reserves in the first and second cryptocurrencies were estimated at 956.6 BTC and 16,032 ETH, with a fair market value of approximately $68.2 million and $58.5 million, respectively (as of March 31). The company’s cash and equivalents amounted to $34.9 million.

Mining companies’ stock performance over the past five days (as of April 5, 2024):

• Marathon Digital Holdings (MARA): -17.69%;
• Argo Blockchain (ARBK): -3.11%;
• Riot Blockchain (RIOT): -17.89%;
• Hut 8 Corp. (HUT): -3.29%;
• HIVE Blockchain (HIVE): -2.14%;
• Bitfarms (BITF): -0.23%;
• Bit Digital (BTBT): -6.59%.

In March, bitcoin miners earned over $2 billion, setting a new historical high.

Previously, mining company executives suggested that the bitcoin halving would harm smaller and less efficient enterprises but would not pose a problem for major players.