One of the leading cryptocurrency mining companies – Marathon Digital – produced 979 BTC in June, down 21% from the 1,245 BTC mined in May.
At the end of last month, the company had 12,538 BTC, making it one of the largest holding companies of the primary digital asset.
The US-based BTC miner announcement that extremely hot weather in Texas last month and the emergence of ordinals, which “significantly increased transaction fees”, had a negative impact on bitcoin production.
Recall that temperatures in the Lone Star State exceeded 35 degrees (Celsius) during the second part of June, which cause some local cryptocurrency mining companies to temporarily halt their operations to preserve the power grid.
Despite the production cut, CEO Fred Thiel explained that Marathon Digital increased its operational hash rate by 16% month-over-month to 17.7 exahashes and its installed hash rate to 21.8 exahashes. .
“The final stops to achieve our 23 PE/s goal are in Ellendale, ND, and Garden City, TX. Ellendale’s final building is expected to come online this month, and Garden City’s final connection is also expected during the same period,” he added.
The company also added 18,500 BTC miners at Applied Digital’s facility in Ellendale, ND, bringing the total fleet to 149,900 machines.
Marathon Digital generally sticks to a HODL strategy. However, it parted with 700 BTC in June and posted its intention to sell more of its assets in the future “to support monthly operations, manage its cash flow and for general corporate purposes.”
As of the end of last month, the company had 12,538 BTC (or over $385 million at current prices). It ended June with $113.7 million in unrestricted cash and cash equivalents on its balance sheet.
Great success in the first quarter
Marathon Digital has experienced operational challenges throughout 2022, brought on by the prolonged bear market, massive storms and exposure to the struggling data center – Compute North.
Nevertheless, he started the new year on the right foot, mining 2,195 BTC in Q1 (significantly more than the 1,259 BTC mined in Q1 2022).
“During the first quarter of 2023, we made notable progress in executing our two main initiatives for the year, which are to energize our previously purchased mining rigs to achieve our target of 23 exahashes by the middle of this year and to optimize our performance so that we are both more effective and more efficient – said CEO Thiel.
Marathon Digital also reduced its debt by $50 million and terminated its credit facilities with the bankrupt Silvergate Bank during the first quarter.
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