- Achieved a New Record in Quarterly BTC Production
- Produced 475 BTC in
- Increased Unrestricted Cash to
Management Commentary
“In 2022, we made significant progress in increasing our hash rate while also transitioning to more sustainable power sources,” said
“In December, we expanded our agreement with Applied Digital to deploy roughly 12,000 S19 XPs, which are approximately 30% more energy efficient than the prior generation of servers, at their
“We also took proactive measures to strengthen our liquidity position and enhance the performance of our mining fleet. Given the macroeconomic uncertainty heading into 2023, we decided to fully pay down outstanding balances under our revolving credit agreement. This freed up bitcoin that was previously held as collateral, increasing our unrestricted bitcoin holdings from 4,200 BTC as of
“During December, we tested overclocking and underclocking servers and began researching dual-phase immersion cooling systems. We also continued working with the new operator of the
“As we enter 2023, we remain confident in our ability to scale Marathon into one of the largest and most energy efficient Bitcoin mining operations globally. We have thousands of miners ready to be energized over the coming months, which we expect to more than triple our current production capacity to approximately 23 exahashes by mid-year.”
Recent Highlights
- Produced 475 BTC in
December 2022 and 1,562 BTC in Q4 2022 - Produced 4,144 BTC in fiscal year 2022, a 30% increase from 3,197 BTC produced in fiscal year 2021
- As of
January 1 , operating mining fleet consisted of approximately 69,000 active miners, capable of producing approximately 7.0 EH/s - 2.1 EH/s is currently pending energization after 1,000 S19 XPs were installed in December
- Depending on Applied Digital’s energization timeline, the Company expects to have between 12.0 EH/s and 15.0 EH/s online by
March 31, 2023 - Reduced revolver borrowings from
$30 million as ofNovember 30 to$0 as ofDecember 31, 2022 - Unrestricted bitcoin holdings on
December 31, 2022 were approximately 7,815 BTC with a fair market value of approximately$129.3 million - Total bitcoin holdings increased to 12,232 BTC as of
December 31, 2022 - Unrestricted cash on hand was approximately
$103.7 million atDecember 31, 2022
Technology Update
In November, Marathon began an immersion-cooled pilot project, which involves submerging Bitcoin mining servers in a dielectric fluid to determine if the Company can improve the efficiency and/or performance of its operations. In December, Marathon’s team successfully increased the hash rate of an S19 J Pro by 20% while reducing its power draw on a per terahash basis by approximately 4%. The Company also increased the hash rate of an S19 XP by 20%, marginally increasing the number of joules per terahash from 21.5 to 23.7 joules per terahash.
Marathon is routinely looking for ways to stay ahead of the technology curve, and our latest exploration is into the potential benefits of dual-phase immersion. Our initial findings suggest that this technology could reduce capital expenditure on servers by approximately 10% versus traditional air-cooled setups and almost 7% compared to single-phase immersion systems. This is achieved by eliminating the need for aluminum chassis, heat synchs, and other parts, which are no longer required in dual-phase immersion cooling. In addition, energy consumption may also be reduced by approximately 7% versus single-phase immersion systems, as dual-phase immersion increases the heat density by 2.5 times, enabling more servers to be racked closely together.
While it remains to be seen if such improvements in performance can be consistently replicated and implemented at scale, the Company is encouraged by these preliminary results and their ability to potentially increase Marathon’s competitive advantages.
Miner Energization and Installations Updates
According to the latest information made publicly available, construction of facilities and installation of miners at Applied Digital’s data center sites remain underway as Applied Digital awaits regulatory approval to energize its newest facilities.
In December, Marathon secured an additional 33 megawatts of hosting capacity with Applied Digital at its
As of
Once all of Marathon’s previously purchased miners are installed, approximately 66% of the Company’s hash rate is expected to be generated by S19 XPs, which are approximately 30% more energy efficient that the prior generation of mining servers. The Company still expects to have approximately 23 EH/s of capacity installed near the middle of 2023.
Investor Notice
Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described under "Risk Factors" in Item 1A of our most recent Annual Report on Form 10-K for the fiscal year ended
Forward-Looking Statements
Statements made in this press release include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by the use of words such as “may,” “will,” “plan,” “should,” “expect,” “anticipate,” “estimate,” “continue,” or comparable terminology. Such forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate and involve factors that may cause actual results to differ materially from those projected or suggested. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the heading “Risk Factors” in the Company's Annual Reports on Form 10-K, as may be supplemented or amended by the Company's Quarterly Reports on Form 10-Q. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.
About
Marathon is a digital asset technology company that focuses on supporting and securing the Bitcoin ecosystem. The Company is currently in the process of becoming one of the largest and most sustainably powered Bitcoin mining operations in
Telephone: 800-804-1690
Email: ir@mara.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d244082a-110c-49d8-8840-4b6b20870fa1
Marathon's Path to 23 EH/s
Latest installation schedules as of January 2023 . Subject to change.
2023 GlobeNewswire, Inc., source