Q2 Marathon Bitcoin Production Down 44% as Fleet Remains Crippled

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Bitcoin (BTC) mining company Marathon Digital Holdings saw a steep 43.8% decline in bitcoin production during the second quarter of 2022, with June marking the company’s least productive month in more than a year. year after the fall of its Montana plant.

In its latest mining update published on July 7, Marathon reported that it produced 707.1 Bitcoin in the second quarter of 2022, down 43.8% from the 1,258.6 Bitcoin mined in the first quarter of 2022.

Marathon’s Bitcoin productivity declined through Q2 2022.

The company’s bitcoin production was hit particularly hard in June, after Marathon’s facility in Hardin, Montana was hit by a huge storm on June 11 that destroyed the power plant that powered 75% of its active fleet.

The outage made June the company’s least productive month since March 2021 and threatens to continue into July, as to date the Montana facility has yet to come back online and no new block has been mined from the MARA mining pool since June 12.

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Marathon CEO Fred Thiel acknowledged that the June storm had a major impact on productivity, but also laid some of the blame for the lack of hash power on Marathon’s new mining facility in Texas, which are not yet lit.

Thiel said the company has already installed 29,640 miners “representing approximately 2.9 exahashes per second” in Texas, although its planned June power-up of its facilities has yet to materialize.

Thiel said Compute North, the company hosting the mining facilities for Marathon’s devices, will not be able to receive power until its energy provider receives “confirmation from the federal agency of its exempt status. tax”.

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Marathon’s vice president of corporate communications, Charlie Schumacher, told TAUT earlier this month that he may consider diversifying his mining operations into other states in the future.

Schumacher said that in addition to existing facilities in Texas, the company is exploring options in Dakota, Oklahoma and Georgia.

“We have already expanded into Texas across different facilities to reduce reliance on one major facility. Getting geographic diversity will help protect us in the future.

Concerns have arisen that more Bitcoin miners will sell coins in order to stay afloat amid rising energy costs and falling mining equipment and crypto prices. TAUT reported on July 6 that miner revenue was down more than 70% from last November’s peak.

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So far, major miners such as Argo, Bitfarms, Core Scientific, and Riot Blockchain have all reported selling coins to pay their bills. Schumacher added that Marathon has not yet sold parts and has no plans to do so, but did not rule it out as an option.

“When we consider financing the business, we seek to do so in the most advantageous way.”