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Marathon Digital Boosts Bitcoin Holdings to 34,794 BTC Worth $3.3 Billion

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  • Marathon holds 34,794 BTC, valued at $3.3B at current prices.
  • $160M in cash reserved for Bitcoin dip purchases by Marathon.
  • $200M in 2026 notes repurchased to strengthen financial position.

Marathon Digital acquired 6,474 BTC in November, increasing its total holdings to 34,794 BTC, valued at $3.3B. It also repurchased $200M in notes and reserved $160M in cash for future purchases, hence the firm seeks to strengthen its position as a top Bitcoin holder.

Marathon Digital Expands Bitcoin Portfolio With Strategic Acquisitions

Marathon Digital purchased 6,474 BTC in November and now directly owns a total of 34,794 BTC. At prevailing market price, the holdings are worth $3.3 billion making Marathon a major player in the cryptocurrency market. The company also revealed $160 million in cash balances to be used to buy BTC next time there is a dip. This shows its readiness to leverage price fluctuations for its advantage.

These acquisitions were financed by a $1 billion convertible zero-interest note offering which generated $980 million in net proceeds. Marathon used $200 million of the funds to repurchase a portion of the 2026 notes and the rest will be used to purchase Bitcoins. This shows its focus to reduce long-term liabilities and maintain financial stability.

Marathon Becomes the Second-Largest Corporate Bitcoin Holder

Marathon Digital holds 34,794 Bitcoins in its reserves which makes it the second-biggest corporate owner of Bitcoin, representing 0.16% of the total Bitcoin supply in the market. MicroStrategy remains the largest holder of Bitcoin, with 1.8% of the total market supply. However, Marathon is quickly closing the gap through constant Bitcoin purchases.

Marathon seeks to hedge against inflation and currency devaluation through creating a robust digital asset reserve. Marathon’s Year-to-Date financial report indicates a 36.7% Bitcoin yield per share. This shows its good financial performance in the cryptocurrency industry.

Bitcoin Adoption Among Public Companies Accelerates

Marathon’s investments come at a time when public companies are also stepping up their Bitcoin purchases. In November, more than 143,800 BTC were bought and added to the corporate reserves while in October the amount was only 2400 BTC. This can be attributed to a new trend of Bitcoin adoption as a strategic reserve asset.

Some of its competitors like MicroStrategy, Rumble and Genius Group are also investing heavily in Bitcoin. The aggressive cryptocurrency acquisitions and strategic financial  management positions Marathon Digital as a leader in the Bitcoin market. Marathon has maintained its liquidity and expanded its asset portfolio to capitalize on future market opportunities.

Marathon Digital, Top Execs Hit By Lawsuit: Here’s What Happened

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Marathon Digital, a major player in the bitcoin mining industry, is in hot water after shareholders filed a lawsuit in the United States District Court for the District of Nevada alleging that Marathon CEO Fred Thiel and nine other Marathon executives violated fiduciary duties, engaged in unfair profiteering, and misappropriated company assets.

In the complaint filed on July 8, shareholders claimed that the firm misstated its revenue, cost, and other financial information in its 2021 and 2022 SEC filings, downplayed its serious problems with internal controls, and engaged in a lucrative insider sale of the company at artificially inflated prices, obtaining proceeds of over $3 million.

Therefore, the plaintiffs are calling for a total revamp of the corporate structure as well as increased board oversight of activities. They want to do away with the current practice of electing directors by holding at least four shareholder nominations for the board.

In addition, the legal team is pursuing the possibility of financial settlements from Thiel, Merrick Okamoto, Simeon Salzman, and Hugh Gallagher for the “wrongful acts” that prompted the U.S. Securities and Exchange Commission [SEC] to take action. The lawyers for the shareholders didn’t ask the defendants for a precise amount, leaving the level of compensation up to the court.

SEC Summoned Marathon Digital Twice

In the fiscal quarter that ended in September 2021, Marathon Digital received its first subpoena. Following that, the Bitcoin miner based in Las Vegas amended its annual report and revealed in February of this year that it had discovered accounting errors in the financial accounts for numerous quarters.

The second subpoena from the US SEC regarding its 100-megawatt data center in Hardin, Montana, was issued in May. At the time, Marathon Digital revealed it was “relating to, among other things, transactions with related parties” that took place while it was building the plant in Montana, according to its quarterly report submitted on May 10, adding:

“We understand that the SEC may be investigating whether or not there may have been any violations of the federal securities law. We are cooperating with the SEC.” However, the mining firm or any of its top management has yet to comment in relation to the most recent filing.

Bitcoin Miner Marathon Sets New Record: Mined 1,245 BTC In May, Marking 366% YoY Growth

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Marathon, a prominent player in the Bitcoin ecosystem, has announced an impressive achievement in its Bitcoin production. According to the press release, the company mined a record-breaking 1,245 BTC in May 2023. 

It represents a remarkable increase of 77% compared to the previous month and a staggering 366% increase from May 2022.

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The surge in BTC production can be attributed to two main factors. Firstly, there was a significant boost in transaction fees, mainly due to the emergence of Ordinals. These higher transaction fees accounted for approximately 11.8% of the total BTC earned by Marathon in May. 

In some cases, these fees even exceeded the 6.25 BTC block reward. Secondly, Marathon experienced an increased hash rate, contributing to its enhanced mining capabilities.

Fred Thiel, Marathon’s chairman, and CEO, expressed his enthusiasm for the company’s achievements. He stated, “We believe these events can serve as a positive sign for the future of mining economics.” 

Thiel highlighted that Marathon’s scale and improved uptime allowed them to capitalize on the opportunity presented by the unusually high transaction fees.

In addition to the remarkable BTC production, Marathon also made significant progress in terms of operational and financial highlights. The company raised nearly $800,000 in collaboration with Brink to support Bitcoin Core developers. 

This initiative received tremendous support from the Bitcoin community, and Marathon aims to raise a total of $1 million.

On the operational side, Marathon increased its hash rate by 9% to 15.2 exahashes per second (EH/s) and its installed hash rate by 13% to 20.1 EH/s in May. 

These advancements were facilitated by the energization of approximately 5,500 BTC miners at Applied Digital’s facilities in North Dakota. Marathon’s operating fleet now consists of around 133,600 BTC miners, capable of producing approximately 15.2 EH/s.

Planned Bitcoin Sales: Marathon Opted To Sell 554 BTC In May

Financially, Marathon reported unrestricted cash and cash equivalents of $97.3 million, along with a total of 12,259 BTC holdings as of May 31, 2023. The company sold 554 BTC during May and plans to sell more in the future to support operations and manage its treasury.

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Marathon’s dedication to supporting the Bitcoin Core developers and the BTC network’s growth is evident in their joint initiative with Brink. While they have already fulfilled their matching pledge of $500,000, they continue to encourage the community to contribute and help reach the $1 million goal.

Nevertheless, Marathon’s record-breaking bitcoin production in May demonstrates its strong position in the Bitcoin mining industry. The company’s operational and financial highlights further solidify its commitment to supporting Bitcoin Core developers and driving the growth of the Bitcoin network.

Related Reading | Ethereum Surge: Dominating Q1 With $457M Revenue, Outshining L1 Rivals 2.8x

Marathon’s Bitcoin Production Hits Record High In Q1 2023 With 41% Increase

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Marathon, a leading Bitcoin mining company in North America, has announced a record-breaking quarter, producing 2,195 BTC in Q1 2023, the highest quarter in the company’s history. The company currently holds 11,466 BTC, worth about $326.5 million, and $124.9 million in cash and cash equivalents.

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According to Marathon’s Q1 report, their hash rate surged to 11.5 EH/s as of March 31, 2023, with the activation of around 13,000 Bitcoin miners. Out of these, 9,400 S19 XPs were powered in Ellendale and 3,500 S19 XPs in Jamestown, North Dakota. Marathon’s active fleet now holds around 105,200 Bitcoin miners capable of generating 11.5 EH/s.

Marathon’s CEO, Fred Thiel, reported that the company achieved significant progress in the first quarter of 2023 by executing its primary goals, which included optimizing mining rig performance to reach 23 exahashes by mid-year. It resulted in a 41% increase in Bitcoin production from the previous quarter. 

Additionally, the company improved its financial position by reducing debt by $50 million and increasing its unrestricted Bitcoin holdings by 3,132 Bitcoin. 

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Despite the success, it recently sold 750 BTC and plans to sell more in the future for operational and corporate purposes. They no longer have deposited at Signature Bank. 

However, the company is optimistic about achieving growth targets and becoming a leading, energy-efficient BTC miner by installing new miners, which are expected to generate 66% of the company’s hash rate and be 30% more energy-efficient than previous models.

Its Q1 success showcases crypto market growth and mining companies’ potential. Nevertheless, with solid finances and production capabilities, Marathon is well-positioned for the future growth of cryptocurrencies.

Bitcoin Hashrate Slowdown After Q1 Highs

In another notable update, Bitcoin’s hashrate is experiencing a slowdown after an impressive Q1, according to the latest report by HashRate Index. The hashrate hit a record high of 357 EH/s on March 28 but has since fallen by 4%. 

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Despite this dip, the hashrate grew by 31% in Q1. The recent drop in hashrate has improved the chances of the next difficulty adjustment being less severe. The current epoch is over 71% complete, and miners find blocks every 9 minutes and 49 seconds on average. 

The difficulty forecast predicts a positive adjustment of around 1.5-1.8% in four days, which is still preferable to the significant upward adjustments that occurred this year. Hashprice, which rose slightly last week but remains below $80/PH/day, must be sustained for a little longer.

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Here’s how much Bitcoin Marathon Digital holds

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Marathon Digital Holdings, a bitcoin mining company, is thought to be the second-largest publicly traded corporation in terms of Bitcoin holdings.

According to unnamed third-party data, Marathon Digital CEO Fred Thiel said during the company’s third-quarter earnings call on Nov. 8 that the company currently holds 11,300 Bitcoin, worth about $205 million, “making Marathon the second largest holder of Bitcoin among publicly traded companies worldwide.”

The NASDAQ-listed cryptocurrency miner is rated second only to MicroStrategy Inc., which has approximately 130,000 total BTC, in terms of holdings, according to CoinGecko. Coinbase, a cryptocurrency exchange, and Block Inc., a payments business created by Jack Dorsey, come after it.

On Nov. 8, the firm released its third-quarter earnings, reporting that the quarter saw 616 Bitcoin added to its holdings, with another 615 BTC added in October alone, the company’s most productive month ever.

Thiel during the conference call said,

“The consistent improvement in our Bitcoin production is the direct result of increasing our hash rates by bringing more Bitcoin servers online and improving those servers.”

The CEO of Marathon Digital also stated that up to this point, no BTC has been sold by the business. This stance will be maintained unless it is judged “necessary to cover operating expenses or other expenses.”

In contrast, other significant miners including Argo, Bitfarms, Core Scientific, and Riot Blockchain reported selling coins to pay their costs.

During the call, Thiel also brought up the “battle” between Sam Bankman-Fried and Changpeng Zhao, CEO of Binance, which he claims is producing “turmoil” for the price of BTC but that they “feel very comfortable” in a range of $18,000 to $20,000.

Bitcoin Miner’s Earning Down In The Third Quarter

The third quarter saw a decline in the BTC miner’s profits, with its net loss nearly trebling from the same period last year to reach $75.4 million and its revenue falling by 75.5% to $12.7 billion.

The miner’s departure from its Montana plant and declining BTC prices resulted in lower BTC production in the quarter, which caused both metrics to fall short of analysts’ estimates.

After leaving Hardin and starting operations in new places, such as the Texas wind farm King Mountain, Thiel described the third quarter as a time of “transition and reconstruction.”

Rival Bitcoin mining company Riot Blockchain also released third-quarter earnings on November 7 that fell short of analyst projections.

Due to “major curtailment activities” linked to its operations in Texas and a large drop in the market price of Bitcoin compared to a year ago, the company’s overall revenue fell by 28.5% in the third quarter while its net loss increased by 139.2%.

According to Google Finance, the stock prices of Riot Blockchain and Marathon Digital have both fallen during the last five days, with Riot Blockchain’s shares down 17.62% and Marathon Digital’s down 18.02%.

Marathon Digital: HODL the coin

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Despite a 45-day delay in delivering its mining rigs through the first quarter, Marathon Digital (MARA), one of the biggest publicly traded bitcoin miners, is still on schedule to fulfill its hashrate forecast of 23.3 exahash per second (EH/s) by early 2023, the company stated in a statement Monday.

Marathon Digital’s mining fleet has produced 1,258.6 bitcoin so far this year, a 556 percent increase over the same period last year. The following is a breakdown of the Company’s bitcoin production by month:

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The Company last sold BTC on October 21, 2020, and has been “hodling” or hoarding all BTC created since then. As a result, Marathon now owns 9,373.6 BTC, including the 4,813 BTC it purchased in January 2021 at an average price of $31,168 per BTC. On April 1, 2022, the fair market value of one BTC was roughly $45,539, meaning that Marathon’s existing BTC holdings are worth around $427.7 million.

BTC production rises by 15% at Marathon Digital

Marathon’s CEO, Fred Thiel, stated that in the first quarter of 2022, the firm raised its bitcoin output by 15% over the previous quarter, producing a total of 1,259 bitcoins, despite the fact that the worldwide hash rate grew by around 17%. If the global hash rate had remained constant from the end of Q4 2021 to the end of Q4 2022, Marathon digital’s BTC production would have climbed 17 percent to 1,282 BTC. The company continues to hold, or HODL, all of its BTC, resulting in a total of 9,374 bitcoin, cementing our position as one of the greatest bitcoin holders among publicly traded companies.

The company blamed the delay on a longer-than-expected approval process for the power it needed to operate. Marathon CEO Fred Thiel, emphasizing that this process necessitated permits, which caused the deployment to be delayed said,

“Typically, power flows from power stations into the grid. However, to ensure we have a consistent power supply when the renewable sources are operating intermittently, we also needed power to flow from the grid back into the power station at scale.”

Marathon’s stock has plummeted 13% this year, while bitcoin has dropped 2.6 percent and mining peers Riot Blockchain (RIOT) and Core Scientific (CORZ) have plunged 9% and 16%, respectively. Marathon also acknowledged that, as Bloomberg previously reported, it is open to selling the company for the right price.

Bitcoin predicted to reach $150,000 by JPMorgan

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The world’s most sought-after cryptocurrency, Bitcoin (BTC) is estimated to reach $150,000 by JPMorgan.

Not very long ago, the world witnessed a huge drop in the value of the coin. Bitcoin (BTC) and Ethereum (ETH) seemed to be looming towards bedrock at the beginning of the year. BTC had plunged to much lesser than $43,000 on 6 January 2022. This drop had weakened investor eagerness in other delicate assets. Truth be told, the U.S. Federal Reserve’s meeting on the same day had shown a desirable rise in March this year.

Bitcoin is currently the world’s largest and most desired coin in the world. The American Investment banking company has raised its BTC goal to $150,000 in the long run. This indicates an increase in its value compared to last year’s value of $146,000.

However, for BTC to attain the above-mentioned goal, the dominant virtual currency will have to match the private sector’s $2.7 trillion investment in gold.

Considering that BTC volatility is around four times that of gold, the strategists determined the fair-value level to be around $38,000. Concurrently, the bank approximated that the fair value climbs to $50,000 in a situation where the volatility gap narrows to three times. The strategists wrote,

“The biggest challenge for Bitcoin going forward is its volatility and the boom and bust cycles that hinder further institutional adoption.”

Bitcoin mining through renewable energy

Marathon Digital Holdings Chairman and CEO, Fred Thiel said that California missed out on $700 million in revenue last year by not mining bitcoin using its abundant renewable energy, in an interview with Yahoo Finance Live while discussing BTC mining regulation.

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Thiel explained that the group currently focused on mining is a group of people concerned about the energy use of “proof of work” as a technology. The Bitcoin blockchain is secured via ‘proof of work’, making it the safest blockchain available. He added that BTC miners in North America primarily use renewable energy.

It has come to light that there is a lot of available renewable energy capacity in California that the grid had told the operators to shut down to the tune of 1.4 terawatt-hours just last year. In perspective, Thiel said,

“Had that energy been used by Bitcoin miners when consumers don’t need it because they were told to shut it off, it would have produced almost $700 million of revenue that could have gone to the energy producers.”

As a result, renewable energy producers have a strong incentive to collaborate with Bitcoin miners. At the time of writing Bitcoin (BTC) was priced at $45,066.92 and was oh high tide of 3.19% over the last 24 hours.