Marathon Digital Holdings Reports $192 Million Net Loss In Q2
Marathon Digital Holdings is a digital asset technology company that mines cryptocurrencies. According to the company website, Marathon is still on track to deploy 199,000 miners by early 2023. At a price of $30,000 per Bitcoin and a total network hash rate of 325 EH/s (Exahash per second), this would generate Marathon 58 BTC per day. This would equate to roughly $640.4 million per year.
Marathon has operations in Texas, Montana, South Dakota and Nebraska. Most of their facilities are using Bitmain Antminer S19, the industry leading Bitcoin miner. Due to their continued expansion plans combined with the recent crypto environment, the company recorded a $127.6 million impairment in their bitcoin holdings.
Marathon’s Texas mining operation is their largest with over 100,000 S19 miners. The recent energy issues brought on by the high temperatures in Texas have paused many of the mining operations in the state to conserve energy. Their net loss was also brought by the steep decline of BTC’s price in Q2. Weather related issues impacted their facility in Montana as well.
Marathon reported that they produced 707 BTC in Q2, which is an 8% increase from the 655 BTC mined in Q2 2021. Another factor that contributed to their net loss this quarter is that energy and hosting costs more than quadrupled from 2021 to 2022.
On August 1, Marathon announced that they would be refinancing its existing $100 million revolving credit and adding an additional $100 million term loan on July 28.
