Marathon Digital Holdings, Inc.

Marathon Digital Holdings Announces Bitcoin Mining Operations Updates for May 2022

Marathon Digital Holdings, Inc.

Total Bitcoin Holdings Rise to 9,941 BTC in May as Number of Miners Installed and Ready to Be Energized Increases to 19,000 Miners (c. 1.9 EH/sec)

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Marathon Digital Holdings Announces Bitcoin Mining Operations Updates for May 2022

LAS VEGAS, 09 June 2022 (GLOBE NEWSWIRE) — Marathon Digital Holdings, Inc. (NASDAQ:MARA) (“Marathon” or “Company”)One of the largest institutional Bitcoin self-mining companies in North America today released its unaudited bitcoin (“BTC”) production and miner setup updates for May 2022.

Management Comment
“Although we continue to place miners at its Texas facilities, we have experienced delays in energizing as Compute North’s energy provider awaits federal approval of its tax-exempt status based on its arrangements with Compute North,” said Fred Thiel, president of Marathon. CEO. “While these delays are disappointing, our current understanding is that miners should start going online this month. We continue to work closely and actively engage with Compute North to learn more about the energy provider’s timeline and to ensure that these delays, once resolved, do not impact our future deployments.

“Meanwhile, our miners’ installations have progressed independently of the energizing program. In addition to our currently active fleet, we have 19,000 miners installed and ready to energize, representing approximately 1.9 EH/s. More than 9,000 of these units, representing 0.9 EH/s, are at Compute North’s first major facility in West Texas. The rest are installed elsewhere. This first major facility is being completed in four phases. Phase one has already been completed. We understand that the entire facility, which will house our approximately 68,000 miners, will be fully constructed with all miners installed by the end of the third quarter of 2022.

“These energizing delays in Texas, combined with ongoing maintenance issues at the power generation station in Hardin, MT, have negatively impacted our bitcoin production last month. In May, maintenance issues at the power generation station in Montana caused us to generate approximately 47% less bitcoin than expected based on the network’s hash rate during the month. However, we believe our production results will improve over time as we move forward with our distribution plan and energize our Texas-based miners.

“We are confident that the Marathon is well positioned to meet its performance targets and will continue to provide updates as they occur. We have a strong foundation to build, a solid pipeline of potential hosting and power arrangements that exceed our needs and allow us to diversify our operations, and we have strong strengths to support our growth plans. “We have a balance sheet. We look forward to continuing to implement our strategy of achieving carbon neutrality by the end of this year and reaching 23.3 EH/s by early 2023.”

Highlights as of June 1, 2022

  • The total number of miners installed and waiting to be energized increased to 19,000 miners (approximately 1.9 EH/s at all sites.

  • The current operating mining fleet consists of 36,830 active miners generating approximately 3.9 EH/s.

  • With a fair market capitalization of $315.1 million, it brings its total bitcoin holdings to 9,941 BTC.

  • In May 2022, 268 self-made bitcoins were produced. Production was lower than expected due to ongoing maintenance and outages at the power plant in Hardin, MT. These issues, which include issues between induced draft and forced draft fans, particulate matter build-up requiring cleaning, and GSU transformer testing, in total reduced Marathon’s potential bitcoin production by approximately 47% over the course of the month.

  • As previously announced, Marathon plans to switch from Hardin, MT to more sustainable power sources in the third quarter of 2022.

  • Cash on hand was approximately $59.6 million and total liquidity, currently defined as unlimited cash and available credit facilities, was approximately $86 million.

Miner Energizing, Installations and Hash Rate Growth
Marathon was first informed by Compute North that energizing the Company’s miners in Texas will begin on April 17, 2022. Marathon was then informed that the energizing was delayed to May 2022. As of June 8, 2022, the facility in West Texas, the energy provider for Compute North’s first major segment, has not yet powered Marathon’s established miners. Although miners continue to be installed at Texas facilities, Marathon has experienced delays in powering up as Compute North’s energy provider awaits federal agency approval of its tax-exempt status based on agreements with Compute North. In Marathon’s understanding, this issue is likely to be resolved this month.

Despite changes to the energizing program, the installation of Marathon miners at Compute North’s Texas facilities continued apace. 19,000 miners (c. 1.9 EH/s) in Marathon are already located in various parts of Texas.

Compute North’s first major facility consists of four substations. These substations are being built in stages and in total they represent 280 MW of capacity for bitcoin mining. The first substation housing over 9,000 Marathon miners (c. 0.9 EH/s) has been completed and is now waiting to be energized. The remaining substations are expected to be phased out, with the entire 280 MW plant expected to be built by the end of the third quarter of 2022. When fully built, this facility will house approximately 68,000 Marathon miners, representing 6.8 EH/s. According to their construction schedule, Compute North informed Marathon that miners are expected to be set up at this facility as follows:

  • June 2022: 19,000 miners (includes 9,000 currently installed)

  • July 2022: 21,000 miners

  • August 2022: 28,000 miners

Given the company’s current construction and installation schedules, coupled with the company’s pipeline of potential new hosting and energy regulations, Marathon continues to expect all 199,000 miners producing approximately 23.3 EH/s to be installed and energized by early 2023. expects mining operations to be 100% carbon neutral by the end of 2022.

Bitcoin Production Update
From year to May 31, 2022, Marathon’s mining fleet generated 1,826 bitcoins, up 214% year-on-year. By month, the Company’s bitcoin production was as follows:

Marathon Digital Holdings Announces Bitcoin Mining Operations Updates for May 2022

*Note: Upgrades and maintenance at the power generation station in Hardin, MT caused Marathon’s bitcoin mining operations in Hardin, MT to operate at significantly reduced capacity in November 2021, negatively impacting the Company’s bitcoin production for the month. In April and May 2022, the Company’s bitcoin production was similarly affected by the maintenance of its power generation station in Hardin, MT.

Total Network Hash Rate Source:

The company is hoarding or “hodling” its bitcoin and has not sold any bitcoins since October 2020. As of June 1, 2022, Marathon had approximately 9,941 BTC, including bitcoin purchased in January 2021, at an average price of $31,168 per BTC. On June 1, 2022, the fair market value of one bitcoin was approximately $31,641, which means the approximate fair market value of Marathon’s current bitcoin holdings is approximately $315.1 million.

Investor Notice
Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties, and forward-looking statements described under “Risk Factors” in Item 1A of our most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2021. The Quarterly Report on Form 10-Q for the fiscal quarter ending March 31, 2022, and to the SEC on March 10, 2022, was submitted to the SEC on May 5, 2022. Should any of these risks materialize, our business, financial condition or results of operations will likely suffer. In this case, the value of our securities may decrease and you may lose some or all of your investment. The risks and uncertainties we identify are not just the risks we face. Additional risks that are currently unknown to us or that we consider insignificant may also adversely affect our business operations. In addition, our past financial performance may not be a reliable indicator of future performance and historical trends should not be used to predict future results. Future changes in the mining difficulty rate or Bitcoin hash rate across the network could also significantly affect the future performance of Marathon’s bitcoin production. Additionally, all discussions of financial metrics assume mining difficulty rates as of June 2022. Total network hash rate data is calculated from a third-party source available at Data from third-party sources has not been independently verified. See “Forward-Looking Statements” below.

forward-looking statements
Statements made in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Like “could,” “will,” “plan,” “should,” “wait,” “anticipate,” “guess,” “continue,” or comparable terminology. Such forward-looking statements are, by their nature, subject to or suggested by certain risks, trends and uncertainties, which many of the Company cannot predict with accuracy, and some of which include factors that the Company could not have foreseen and which could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements and are encouraged to consider the factors listed above along with additional factors under the heading “Risk Factors” in the Company’s Annual Reports on Form 10-K. or the Company’s Quarterly Reports on Form 10-Q. The Company undertakes no obligation to update or supplement any forward-looking statements that are inaccurate due to subsequent events, new information or otherwise.

About Marathon Digital Holdings
Marathon is a bitcoin mining digital asset technology company with a focus on the blockchain ecosystem and the production of digital assets.

Marathon Digital Holdings Company Contact:
Phone: 800-804-1690

A photo accompanying this announcement is available at

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