Marathon Digital becomes 2nd largest Bitcoin holder among public companies, has not sold any BTC

Marathon Digital CEO Fred Thiel said on the Nov. 8 earnings call that the company is in a “transition period”, growing from 7EH/s to 23EH/s by mid-2023.

Marathons increase hashrate

Additionally, the company increased the number of Bitcoin miners to 6,000, resulting in an increase from 72 BTC mined in July to 615 BTC in October. This increase made October “the most productive month in history” for the marathon.

However, the company’s revenue is declining QoQ and YoY. Nonetheless, Thiel said: The foundation is backed by his reserve of 11,300 BTC, making Marathon “the second largest holder among listed companies.” Additionally, Thiel clarified that Marathon did not need to sell Bitcoin.

Marathon increased hashrate by 84% by introducing miners, but also moved away from its coal-powered Montana factory. As such, the renewable energy mix is ​​increasing.

best time to mine bitcoin

“There has never been a better time to scale Bitcoin production with 30% more efficient miners,” said Thiel. Marathon’s CEO has revealed that by the time he reaches his 2023 target of 23 EH/s, 60% of his hashrate will come from his Bitmain Antminer ‘S19XP miner’.

As a result, Marathon uses “47% less energy on a TH basis” by utilizing these state-of-the-art Bitcoin miners that are 30% more efficient than average mining equipment. Other miners such as S9 and S19 require energy costs of 3c and 8.5 KWh respectively.

According to Thiel, the S19XP miner’s integration “allows us to keep our lights on when others don’t.” Most of Marathon’s capacity is his S19J Pro Minor.

“You will see a few XPs coming online in Q4 … the mix when fully deployed will be 66% of hashrate … Anecdotally, the S19XP is a better quality machine and more It has a low temperature operating range, which allows it to run in mildly warned climates without shutting down, increasing its overclocking capacity.

Improved energy efficiency

Looking ahead, Thiel says, “To add value, it’s essential to become more effective and efficient over time.” Marathon does this by evaluating new technologies and reducing fossil fuel use by going behind the meter with renewable power plants.

Marathon’s CEO said the company “strives to make Bitcoin mining more energy efficient and renewable.” We also explore international markets that are becoming increasingly attractive due to innovations in the energy sector.

Q&A corner

When asked how well-positioned Marathon is to weather the bear market, Thiel said he expects Bitcoin to trade within the $18,000 to $21,000 range “for some time.” , said it was “very well positioned to weather that storm.” Plus, the range is one where the Marathon “feels very comfortable.”

Asked whether Marathon would consider acquiring other Bitcoin mining facilities, Thiel argued that the industry works in reverse to many other mining facilities. “When things get tougher, the cost of exchanging assets goes down…When the price of Bitcoin goes down, the price of Bitcoin miners goes down.” As a result, buying miners from competitors is almost always Thiel believes it means buying obsolete technology.

Conclusion

Overall, we focused on Marathon’s strong position to “ride out the storm” during a bear market, while highlighting the $18,000 support as the bottom of the company’s “comfortable” range. The company’s main goal is to increase the combination of more efficient mining and renewable energy through

In a final statement, Thiel warned of Bitcoin’s price at the next halving event scheduled for the first quarter of 2024.

“If Bitcoin were a teenage halving, it would have serious implications for the entire industry.”