Cryptocurrency mining operator Marathon Digital Holdings (NASDAQ: MARA) reported a 9% drop in Bitcoin production for August 2023, producing 1,072 Bitcoin compared to the previous month. The decline was attributed to increased curtailment activity in Texas due to record high temperatures, which led to temporary shutdowns of mining operations, according to Fred Thiel, Marathon's CEO.
Despite the dip in production from July, Marathon's output has significantly increased compared to the same period last year. The company produced five times more Bitcoin in August 2023 than it did in August 2022. This increase can be attributed to the growth in computing power available for crypto mining. In August 2022, Marathon's average daily production was 5.9 BTC, which has since surged by 477% to 34.3 BTC per day.
In addition to the production figures, Marathon also reported a slight increase in its operational hash rate. The US operational hash rate rose by 2% month-over-month to reach 19.1 exahashes.
The company also announced that it had reached its primary domestic growth target of 23 exahashes and is now setting its sights on achieving a hash rate of 30 exahashes. Two exahashes are expected to come from international facilities, while five will be contracted from other entities.
Marathon's joint venture in Abu Dhabi, established in July, produced 50 Bitcoin in August, approximately 10 of which belong to Marathon. The venture's operational hash rate has reached 1.5 exahashes with plans to scale up to 7.0 exahashes by year-end.
As of August 31, Marathon held a total of 13,286 BTC, with 13,111 being unrestricted. The company ended the month with $111.2 million in cash and cash equivalents. The combined balance of unrestricted cash and Bitcoin increased to $445.5 million, compared to $201.5 million during the same period last year.
However, the broader cryptocurrency mining industry faced significant losses due to a recent plunge in Bitcoin prices. Five major cryptocurrency mining firms, including Marathon Digital, experienced a collective loss of $2.8 billion as their market capitalization shrank by 30% within a month.
Despite these challenges, Marathon Digital's stock has surged by 250% this year. However, this upward trend halted around July at about $20 per share and has since declined by approximately 40% to around $12 per share.
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