FORT LAUDERDALE – Marathon Digital (NASDAQ:MARA) Holdings, Inc. (NASDAQ: MARA), a company focusing on digital asset compute to support energy transformation, has reported an increase in its operational hash rate by 22% month over month, reaching 25.7 EH/s for May 2024. The company also disclosed an increase in its Bitcoin holdings to 17,857 BTC, with a total cash and Bitcoin value of $1.5 billion as of May 31, 2024.
In May, Marathon managed to mitigate the impact of the Bitcoin Halving event by increasing the number of blocks won by 32% over April, resulting in the production of 616 Bitcoin—a 27% decrease from the previous month. Despite this, the average operational hash rate showed a significant improvement.
The company’s chairman and CEO, Fred Thiel, noted the strength of their MARA pool and their progress toward a target hash rate of 50 EH/s by the end of 2024. Thiel also highlighted Marathon's international efforts, including an agreement with Kenya's Ministry of Energy and Petroleum to support energy utilization and optimize renewable energy projects.
Marathon’s report indicated that approximately 5,000 additional miners were energized in May, contributing to an operating fleet capable of producing 30.6 EH/s. The company achieved a peak overall hash rate of 28.1 EH/s during the month.
Financially, Marathon's balance sheet showed $290.4 million in unrestricted cash and cash equivalents at the end of May. The combined balance of unrestricted cash and Bitcoin holdings increased significantly from the previous month.
The company's recent activities include an agreement to enhance Kenya's energy sector and the publication of its first-quarter results for 2024. Marathon also sold 390 Bitcoin in May and plans to continue selling a portion of its holdings to support operations and manage its treasury.
This update is based on a press release statement from Marathon Digital Holdings and reflects the company's operational and financial status as of the end of May 2024.
In other recent news, Marathon Digital Holdings announced record financial results for Q1 2024, reporting net income of $337 million and revenues of $165 million. The company attributed these impressive figures to favorable Bitcoin prices and increased production. As part of its transition to a globally diversified entity, Marathon Digital acquired fully-owned Bitcoin mining sites, effectively doubling its capacity to 1.1 gigawatts. Despite challenges, the company expanded its Bitcoin holdings by 15%, now valued at $1.2 billion.
Marathon Digital's recent developments also include plans to increase Bitcoin holdings through production and continue selling Bitcoin for operational costs. The company aims for 50% of revenues from non-utility-scale mining in the long term and plans to reach 50 exahash of compute capacity by the end of 2024. Expansion into international markets is anticipated, with sufficient liquidity to fund growth targets for the year.
Operational challenges and equipment failures were noted during the quarter, with general and administrative expenses rising to $21 million due to increased scale. However, Marathon Digital's strategic transformation and robust financial performance, as highlighted in their Q1 2024 earnings call, indicate their continued growth in the digital asset sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.