Marathon Digital: Sustainable Bitcoin Mining
Marathon Digital Holdings (MDH) aims to ease economic freedom, financial inclusion, and greater transparency by improving the security and development of the world's first and largest public blockchain ledger, Bitcoin (BTC), a block at a time.
The organisation believes in a more fair, inclusive, and open financial system—Bitcoin is crucial to making it happen. MDH is committed to supporting the Bitcoin ecosystem by building sustainable, agile, and large, green Bitcoin mining systems in North America.
Sustainable BTC mining powered by Marathon Digital
MDH is in the process of building one of the largest green BTC mining systems in North America. The organisation aims to achieve its goal of sustainable, green BTC mining by focusing on increasing computing power (or hashrate) rather than building and operating data centres.
The business intends to stay lean and green while becoming more energy efficient. A key component of its strategy is to co-locate operations at feasible, sustainable energy sites. This ensures that its power source is sustainable and reduces the stress placed on traditional electrical grid infrastructure.
In a nutshell, the company deploys more robust BTC miners to increase hashrate and hence, the possibility of earning more Bitcoin. By employing sustainable energy sources, leveraging its scale, and remaining agile, MDH can negotiate favourable contracts, swiftly adapt to altering circumstances, and ‘de-risk’.
This enables the business to better cope with the impacts of potential declines in the price of Bitcoin.
Marathon Digital: the latest financial news
The current value of the Marathon Digital Holding Inc. stock, MARA, is $5.33, with a market valuation of nearly $622.8M. It should be noted that one year ago, MARA was trading above $30 (30 March, 2022)!
According to the latest financial result filed by Marathon Digital (Q3 2022), the organisation recorded a net loss of $75.4M in Q3 2022. Therefore, the latest news governing Marathon Digital's prepayment of its whole-term loan should be music to the ears of investors.
In early February 2023, the organisation gave Silvergate Bank the necessary 30-day notice, indicating its intent to repay and terminate the term loan facility. The prepayment was completed on 8 March, 2023, and the organisation's facilities with Silvergate Bank were ended (talk about timing!).
This resulted in an enormous debt reduction of $50M and an increase in unrestricted BTC holdings by 3,132 tokens - the BTC held as collateral by a third-party custodian as part of the term loan deal was returned to Marathon Digital.
To put this into perspective, this move alone has resulted in the company reducing its leverage by $50M, freeing up more than $70M in BTC at the time of writing, and reducing facility fees and annual cash interest costs by around $5M. Other interesting statistics include:
The company’s mining facilities produced 683 Bitcoin in February 2023.
MDH enhanced the BTC hash rate by 30% compared to January 2023 by energising nearly 19,000 miners.
Figures related to unrestricted cash and BTC holdings are subject to change following the latest term loan deal. But if we are talking about figures in February exclusively, the company has unrestricted cash holdings of $219.7M and unrestricted BTC holdings of 8,260 tokens.
With a push for sustainable, green mining measures the need of the hour, leaders like Marathon Digital is making more than a splash. Follow the latest updates from MDH by signing up for email alerts.
Author: Surajdeep Singh
Surajdeep Singh has been working in the tech sphere as a marketing guru and journalist for over 6 years, with his speciality laying in blockchain and Web3. He has donned several hats in marketing and journalism over the years and worked with many reputable brands. Feel free to reach out to him on LinkedIn!