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Wednesday, Feb 8, 2023
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Bitcoin

Marathon Digital Holdings mines 1,563 Bitcoin in final quarter of 2022

The company’s total unrestricted BTC holdings are 7,815 BTC (or approximately USD$129.3 million) as of December 31

Immersion cooling tanks inside. Image via Marathon Digital Holdings.

Marathon Digital Holdings (NASDAQ: MARA) published its unaudited bitcoin production and miner installation updates for December 2022 today.

The company mined 1,563 bitcoin in Q4. Also, it increased its hash rate without sacrificing its progress in terms of transitioning to more sustainable power sources. Now the company operates with a hash rate of 7.0 exahashes per second year over year, and the majority of it comes from the King Mountain wind farm in West Texas.

“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,” said Fred Thiel, Marathon’s chairman and CEO.

The company expanded its agreement with Applied Digital in December to use roughly 12,000 S19 XPs at their Jamestown facility in North Dakota. The S19XPs are a more energy efficient type of bitcoin miner. The site is already built and working and the expectation is that miners will come online within the next month. Miner installations are underway at Garden City, and the company presently has 2.1 exahash prepared.

Read more: Galaxy Digital Holdings inks agreement with Argo Blockchain for Texas mining facility

Read more: Infinite Reality and Newbury Street Acquisition combination forms metaverse centred media company

Marathon improves liquidity while engaging cooling tech

Marathon also started taking proactive measures to improve its liquidity situation and enhance fleet performance. It paid its outstanding balances under its revolving credit agreement, which freed up 4,200 bitcoin it had been using as collateral. This boosted its total unrestricted BTC holdings to 7,815 BTC (or approximately USD$129.3 million) as of December 31. Additionally, the company turned the new year over with a $103.7 million cash position.

Marathon Digital Holdings also produced 475 bitcoin in December 2022 with 1,562 BTC topping out Q4. The Bitcoin mining stats for the fiscal year top out with 4,144 BTC, which is 30 per cent more than the 3,197 BTC produced in 2021. This brings Marathon’s total bitcoin holdings to 12,232 BTC as of December, 2022.

“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 King Mountain site on improving operations and the curtailment strategy to optimize production,” said Thiel.

These changes will help Marathon develop significant advantages over its competition.

The company initiated a pilot project using immersion-cooling to keep its ASIC rigs cool and reduce costs. It involves sinking Bitcoin mining servers into a dielectric fluid to reduce the amount of heat the ASIC rigs generate, and potentially improve operational efficiency.

The team successfully bumped the hash rate of an S19 J Pro ASIC rig by 20 per cent while reducing the amount of power used per terahash by approximately 4 per cent. Additionally, the company boosted its hash rate of an S19 XP by 20 per cent by increasing the number of joules per terahash from 21.5 to 23.7 joules per terahash.

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