This is how Bitcoin mining company prepares for the next bull market

Key facts:
  • Marathon prepares to operate 68,000 Bitcoin mining rigs in a short time.

  • The company’s savings exceed 10,000 BTC, despite recent investments.

According to the most recent report from Marathon, a highly engaged Bitcoin mining company, the second quarter of the year represented a period of losses. However, this situation did not prevent this company’s expansion plans from continuing, with a view to the next bull market or bull market.

The report of Marathon indicates that between May and June the company increased its production 8% compared to the same period in 2021. They mined 707 bitcoins (BTC), 44% less than between January and March of this year, when 1,259 BTC were mined.

This decrease is related to the difficulties in the electricity supply that generated a prolonged heat wave in the southern United States and a storm in Montana, which also affected other Bitcoin miners, as reported by CriptoNoticias.

Due, Marathon decided to suspend its operations in Montana and cancel its negotiations with NYDIG Digital Asset Fund.with a plan that includes the sale or relocation of the Antminer S19 that worked in those facilities.

Additionally, Marathon confirms that it has been working on the conditioning of a mining farm that would allow the operation of 68,000 new pieces of equipment, in an agreement with Compute North.

Marathon currently has 49,000 pieces of equipment already installed, which would provide the network with 4.7 EH/s. In addition, its facilities can already accommodate 23.3 EH/s, which will be the company’s operating base once new agreements with Applied Blockchain and Compute North are finalized.

The company states that at least 40,000 new pieces of equipment have already been operating since the end of July in the new facility that is powered by wind energy. They add that they began supplying power to the mining equipment as soon as the power supplier received approval from the regulator indicating tax exemption for the wind farm that produces up to 280 megawatts.

Marathon has also just finalized a refinancing of a contract with Bitmain signed at the end of 2021. One of the terms of the contract allows executing a price adjustment to face adverse market conditions, as reported by CriptoNoticias.

In this case, the mining company will benefit from this price adjustment for the purchase of 13,000 new Antminer S19 XP rigs (140 TH/s), that Marathon estimates that they will provide 66% of all the hashrate that they estimate to have with the expansion project up to 23.3 EH/s.

This represents savings in terms of acquired debt and in terms of energy usesince the Antminer S19 XP are up to 30% more efficient than previous models.

Despite losing millions

The bear market hit the finances of this Bitcoin mining company considerably. According to the report, in the last three-month period, your income was reduced.

“Delays in power, maintenance, and weather issues in Montana, and an approximately 56% decline in the price of bitcoin during the quarter, severely impacted our bitcoin production and financial results. These items reduced our income, caused us to record a $127.6 million impairment on our bitcoin holdings, and reduced the fair market value of our mutual fund by $79.7 million.”

Fred Thiel, CEO of Marathon.

Even in the midst of this circumstance, the company is optimistic about the future. In this sense, the report indicates that Marathon’s bitcoin savings currently amount to 10,127 BTC.

In addition, so far this year they have obtained rewards of 2,038 BTC for mining Bitcoin. This represents 58% more than the same period last year.

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