Marathon Digital raises reserves to 10,670 BTC

The mining company Marathon Digital Holdings mined 360 BTC in September and lifted its crypto reserves to 10,670 BTC.

$MARA‘s September 22 production update is out:

— Produced 360 #BTC

— Increased hash rate to 5.7 EH/s

— 57,000 total active miners

— 19,000 additional miners expected to be brought online over the next 30 days

— #BTC holdings = 10,670 #HODLhttps://t.co/quz4hjz60U

— Marathon Digital Holdings (NASDAQ: MARA) (@MarathonDH) October 6, 2022

With the exception of Bitcoin held as collateral, as of September 30 the company had 6,841 BTC and about $55.3 million in fiat currency.

By the end of the month Marathon’s hash rate reached 3.8 EH/s, with a miner fleet of around 37,000. In early October the company boosted capacity to 5.7 EH/s, deploying around 19,000 additional devices.

The company expects to install a similar amount of equipment in the coming month. This would add around 2 EH/s of hash rate, with a target of 23 EH/s by the middle of the 2023 financial year.

Marathon noted that most of its equipment operates at the hosting provider Compute North’s facilities, which previously filed for bankruptcy. The company said the situation had not adversely affected operations.

Financial risks for Marathon include its convertible preferred shares in Compute North valued at $10 million and $21.3 million. The company has also contributed operating deposits of $50 million to the provider. Payments are mainly linked to supporting operations at the King Mountain and Wolf Hollow sites in Texas.

Marathon has, as scheduled, completed the relocation of equipment from Compute North’s data centre in Hardin, Montana. The firm is also relocating around 3,000 miners and the provider’s facilities to Nebraska and South Dakota.

In June, public miners for the first time sold more of the first cryptocurrency than they mined. The companies liquidating around 14,600 BTC. Marathon then confirmed the strategy for long-term storage of mined cryptocurrency.

In July, the trend continued : with total mined of 3,478 BTC, the firms sold 5,768 BTC. Marathon and Hut 8 Mining continued to hold reserves in digital assets.

In September, Arcane Research analysts concluded that the overwhelming majority of public miners were hit by cryptowinter. Analysts say that further stagnation in Bitcoin’s price and rising hash rate could worsen the already difficult position of these companies.

In September, miners’ aggregate revenue fell by 19% to $551 million, according to ForkLog.

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