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MARA shares dip as bitcoin falls, despite mining record

Published 03/12/2024, 12:54 am
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On Monday, shares of MARA (NASDAQ: MARA) saw a marginal decline of 1% as the price of bitcoin experienced a downturn. This movement came even as the company announced a significant update on its mining operations. MARA, a prominent player in the digital asset sector, has been subject to heightened volatility, with its stock being one of the most actively traded among bitcoin-related equities. After a notable surge of approximately 10% on Friday, the stock closed with a modest gain of less than 2%.

The company released an unaudited BTC production update for November 2024, revealing a milestone achievement in its mining operations. MARA's mining activities yielded a record-breaking 254 blocks in November, marking a 27% increase from October and setting an all-time high for monthly production. The company's BTC production grew by 26% month-over-month, reaching 907 BTC. Additionally, the energized hash rate saw a 15% increase from the previous month, rising to 46.1 EH/s.

MARA's chairman and CEO, Fred Thiel, commented on the company's operational success, stating, "November was a record-breaking month for MARA, with our mining operations achieving unprecedented levels of production driven by the successful deployment of additional miners and enhanced operational efficiency." He highlighted the company's strategic approach to acquiring bitcoin, which includes both mining and purchasing the digital asset, providing flexibility and optimizing acquisition costs.

By the end of November 2024, MARA had acquired a total of 12,965 BTC at an average price of $77,692 and mined an additional 8,563 BTC throughout the year. The company's year-to-date BTC yield per share stood at 37.2%. MARA's total bitcoin holdings amounted to 34,959 BTC, valued at approximately $3.3 billion, based on the spot price of $95,000 per BTC.

Thiel emphasized the company's competitive edge, stating, "We believe we maintain a competitive advantage through our mining operations, enabling us to produce BTC at a lower cost than the prevailing spot price. This dual approach strengthens our position and enhances our ability to deliver long-term shareholder value." The operational update underscores MARA's commitment to scaling its operations and optimizing performance within the digital asset industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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