Marathon Digital Holdings, a leading North American Bitcoin mining enterprise, released its unaudited production and operational report for November 2021. The period was marked by significant infrastructure upgrades and strategic expansions, setting the stage for substantial future growth despite temporary production impacts.
Key Operational and Financial Metrics
As of December 1, 2021, Marathon held approximately $623.7 million in cash and a total liquidity position of $1.1 billion, including its Bitcoin holdings. The company successfully received 15,520 new ASIC miners from Bitmain in November, bringing the year-to-date deliveries to 56,826 units, with an additional 8,477 miners in transit.
The mining fleet consisted of 31,000 active miners, producing a hash rate of approximately 3.2 exahashes per second (EH/s). Marathon’s Bitcoin holdings increased to 7,649.1 BTC, with a fair market value of around $437.4 million, based on a Bitcoin price of $57,180 per coin on December 1, 2021. The company has not sold any Bitcoin since October 2020, opting instead to accumulate all self-mined coins.
Hardin Facility Upgrades and Impact on Production
Scheduled upgrades and maintenance were performed at the power generating station in Hardin, Montana, during November. These critical improvements included cleaning nearly 400 tons of particulate matter to enhance the plant's efficiency and safety. While these necessary procedures caused the mining operations to run at a substantially reduced capacity for much of the month, they were completed by December 1st.
The immediate result was a notable rebound in production, with the facility generating approximately 34 Bitcoin on the first day of December once operations resumed near full capacity. However, the downtime contributed to a lower monthly output, with Marathon self-mining 196 Bitcoin in November.
Expansion with Compute North and Hash Rate Growth
A major milestone was the completion of miner deployments at the Hardin facility. The company has now begun deploying its previously purchased miners at facilities operated by Compute North. This expanded partnership has secured hosting for Marathon's entire fleet, with a significant portion to be located "behind the meter" at wind and solar farms powered by one of North America's largest renewable energy providers.
To mitigate global logistics delays, Marathon chartered planes to expedite miner shipments, reducing transit time from an average of 21 days to just 5 days. Based on current shipment schedules, the company anticipates all previously purchased miners will be delivered by mid-2022. Once fully deployed, the total fleet of approximately 133,000 miners is projected to generate a hash rate of 13.3 EH/s.
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Leadership Perspective on Progress and Strategy
Fred Thiel, Marathon's CEO, emphasized the significance of the month's achievements. He noted that the completion of the Hardin buildout, the commencement of deployments with Compute North, and the substantial liquidity position have positioned the company for efficient scaling. Thiel highlighted the strategic benefits of using renewable energy at industry-low rates and the company's agility in navigating supply chain challenges.
He reiterated the long-term view, stating that the temporary production impact from the Hardin upgrades was a necessary step toward achieving greater future stability and output. The company's goal remains to reach 13.3 EH/s by mid-2022 while maintaining a focus on sustainability and operational excellence.
Frequently Asked Questions
What was Marathon's total liquidity at the start of December 2021?
Marathon's total liquidity, comprising cash and Bitcoin holdings, was approximately $1.1 billion. This strong capital position provides significant optionality for future growth and operational scaling.
Why was Bitcoin production lower in November 2021?
Production was impacted by scheduled upgrades and maintenance at the power generating station in Hardin, Montana. This necessary work temporarily reduced the site's mining capacity but was completed to improve long-term efficiency and reliability.
What is Marathon's strategy for hosting its new miners?
The company has secured hosting for its entire fleet of purchased miners, predominantly with Compute North at facilities powered by renewable energy. This approach supports sustainable mining practices and provides cost efficiency.
How is Marathon handling global shipping delays?
To combat logistics issues, the company has been chartering planes to expedite miner shipments. This strategy has successfully reduced average shipping times from 21 days to just 5 days.
What is the expected hash rate once all miners are deployed?
Marathon anticipates its mining fleet will achieve a hash rate of approximately 13.3 EH/s once all 133,000 miners are fully installed and operational, which is projected for mid-2022.
Does Marathon sell the Bitcoin it mines?
The company has adopted a strategy of accumulating Bitcoin, often referred to as "hodling." It has not sold any Bitcoin since October 2020, choosing instead to grow its holdings on its balance sheet.