Marathon cuts Bitcoin mining by 44%

In the second quarter of 2022, Marathon Digital Holdings, the U.S. mining company, mined 707 BTC — down 43.8% from the first three months of the year.

$MARA‘s June 2022 #bitcoin production and mining operations is out:

— 29,640 miners (c. 2.9 EH/s) ready to be energized
— Total #BTC holdings = 10,055 BTC #HODL
— Produced 707 #BTC during 2022 Q2https://t.co/Scd3NM3SYl

— Marathon Digital Holdings (@MarathonDH) July 7, 2022

Year-on-year, the figure rose by only 8%. Bitcoin mining began to fall from April, with June the weakest month (140 BTC).

The decline in quarterly mining was attributed to several factors:

• delays in power delivery to facilities in Texas;
• maintenance of the Hardin, Montana power plant in April–May and a hurricane that damaged it in June.

According to Marathon chairman and CEO Fred Thiel, the company has the Compute North infrastructure provider in Texas, for a total of about 49,640 miners with a potential hash rate of around 4.8 EH/s. The equipment is ready to be connected to the network.

“Despite the numerous assurances that power would come online in June, the Compute North provider is still awaiting confirmation from the federal agency of its tax status,” Thiel noted.

On June 11, a hurricane through Hardin damaged the power plant’s cooling towers, leaving 30,000 miners without power in the region, Marathon’s chief said. The firm had 6,300 active devices remaining, producing roughly 0.7 EH/s.

“Despite the current operational challenges, we are working to capitalise on hosting opportunities, and we are actively engaging with various providers. Ultimately we look forward to overcoming these temporary difficulties and strengthening Marathon’s position as an industry leader,” Thiel said.

By quarter-end Marathon had 10,055 BTC (about $199 million) and cash on hand of roughly $88.7 million. The outstanding loan balance stood at $35 million.

As noted in April, Marathon were among the most overvalued among public mining companies, according to Arcane Research’s metric released in April.

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