Reason to trust
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
The large American-based bitcoin self-mining company, Marathon Digital Holdings, reported an increase of total BTC holdings on its October update of the company’s bitcoin production and mining operations.
In October, the company increased its total bitcoin holdings to around 7,453 BTC after mining 417.7 bitcoins. This translates to $457.4 million of market value, and their total liquidity now reaches approximately $478.3 million.
The company has been ‘hodling’ the totality of its mined and bought bitcoins since October 2020, taking into account 4,812.66 BTC purchased past January at the price of $31,168 per BTC.
Related Reading | Marathon Digital Holdings Reported A 17% Spike In Bitcoin Mining
Furthermore, after buying $120,7 million of mining machines from Bitmain, they received a shipment of roughly 42,381 top-tier ASIC miners, “with 12,331 delivered to a Compute North facility” pending deployment “and an additional 3,285 ASIC miners currently in transit”. They currently have 27,280 active miners on their fleet, resulting in a production of 2.96 EH/s.
While deliveries of miners may continue to fluctuate in the near-term, based on current estimates, the Company still anticipates all previously purchased miners to be delivered by mid-2022. Once all miners are fully installed, the Company’s mining fleet is expected to consist of approximately 133,000 miners, generating approximately 13.3 EH/s.
Their MaraPool, which is fully audited and focuses on lowering BTC mining’s environmental impact, reached 3.0 EH/s with a network hash rate of 170.9 EH/s. Fred Thiel, Marathon’s CEO, stated:
In addition to improving our bitcoin production, MaraPool reached 3.0 EH/s, and we began sending our first batches of miners to one of Compute North’s facilities. We also began chartering planes in October to expedite the delivery of our miners and to mitigate the adverse effects of global logistics issues on our growth. By chartering planes, we decreased the average time it took for miners to be shipped and delivered by approximately 50% from September to October.
Big Horizons For Bitcoin Mining In The U.S.
Last month, the company secured a $100 million yearly renewable loan with Silvergate Bank to fund their mining operations and equipment. They currently expect more growth during the fourth quarter, said Fred Thiel:
Given the number of miners expected to ship and the steps we have taken to prepare for their deployment, we believe that the fourth quarter will be a transformative time for our business, and we look forward to continuing to scale our mining operations.
Back in May, the company had accounted for its plan to transition into the first mining pool to produce “100% carbon neutral and OFAC compliant bitcoins”, as well as its agreement with Compute North, who offers a large-scale service provider with “environmentally friendly hosting and infrastructure”.
The partnership is meant to help them achieve their goals by allowing them to operate their mining fleet “in regulatory environments that have proven to be friendly to Bitcoin miners and at rates that we believe are among the lowest in the country.”
As in prior months, our bitcoin production was impacted by maintenance-related outages at the power plant in Hardin, MT, and increases in the total network hash rate. However, with shipments of our previously purchased miners accelerating over the coming months, we continue to expect our bitcoin production to become more consistent as we scale.
Related Reading | How Governments Mining Bitcoin Could De-Risk Cryptocurrency
