Marathon’s Q2 loss exceeds $190 million

American mining company Marathon Digital Holdings posted a net loss of $191.6 million in the second quarter, versus $13 million in January–March.

$MARA‘s Q2 financial results and July 22 production update are out:

— Energization commencing in West Texas

— 49,000 miners (c. 4.7 EH/s) installed as of 7/31

— Approx. 66% of 23.3 EH to be generated by S19 XPs

— Total #BTC holdings = 10,127 #HODLhttps://t.co/o1GOXxuotK

— Marathon Digital Holdings (NASDAQ: MARA) (@MarathonDH) August 8, 2022

The firm attributed the quarter-on-quarter rise in losses of about 1,374% to the following factors:

• a 44% drop in Bitcoin mining due to delays connecting the Texas facility to the power grids of Compute North in Texas and a hurricane-damaged power plant serving the data centre in Montana;
• a decline in the price of digital gold, which affected mining profitability;
• revaluation of cryptocurrency reserves, which as of June 30 reached 10,055 BTC;
• rising costs for the accelerated relocation of miners from the Hardin facility in Montana.

Thiel noted that in July Marathon began connecting the devices installed at the Texas site, after the wind-powered plant obtained the necessary permissions. The company deployed 40,000 miners out of the planned 68,000.

«We are in the process of upgrading our fleet. So by the time we reach 23.3 EH/s, it is expected that ~66% of the hashrate will be generated by Antminer S19 XP miners, which are ~30% more energy-efficient than devices of the previous generation», — said the head of the company.

In August, Marathon agreed to open a renewable credit line of $100 million from Silvergate Capital backed by Bitcoin.

Earlier the firm confirmed its commitment to a long-term strategy of accumulating reserves in the first cryptocurrency.

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