Marathon Digital Mined 21% Less BTC in June due to Extreme Weather Conditions in Texas

One of the leading cryptocurrency miners – Marathon Digital – produced 979 BTC in June, down 21% from 1,245 BTC in May.

As of the end of last month, the company held 12,538 BTC, making it one of the largest owners of the underlying digital asset.

June numbers

US-based BTC miner announce The extremely hot weather in Texas last month and the emergence of Ordinals, which “significantly increased transaction fees,” have negatively affected bitcoin production.

Recall that temperatures in the Lone Star State exceeded 35 degrees (Celsius) during the second part of June, which it causes Some local cryptocurrency mining companies are pausing their activities to preserve the power grid.

Despite the production decline, CEO Fred Thiel explained that Marathon Digital increased its operational hash rate by 16% month over month to 17.7 exahashes and its proven hash rate to 21.8 exahashes.

“Final steps to achieving our 23 EH/s target are in Ellendale, ND, and Garden City, TX. Work on the final building in Ellendale is expected to begin this month, and final entry in Garden City is also expected during the same period.”

The company also added 18,500 BTC miners at Applied Digital’s facilities in Ellendale, North Dakota, thus increasing the total fleet to 149,900 machines.

Marathon Digital usually sticks to the HODL strategy. However, it dumped 700 BTC in June and indicated its intention to sell more of its assets in the future “to support monthly operations, treasury management, and general corporate purposes.”

As of the end of last month, the company had 12,538 BTC (equivalent to over $385 million at current prices). It ended June with $113.7 million of unrestricted cash and cash equivalents on the balance sheet.

Great success in the first quarter

Marathon Digital experienced operational difficulties throughout 2022, driven by a prolonged bear market, massive storms, and exposure to troubled data center – Compute North.

However, the new year has started off on the right foot. mining 2,195 BTC during the first quarter (much more than the 1,259 BTC mined in the first quarter of 2022).

“During the first quarter of 2023, we made significant progress in implementing two key initiatives for this year, namely revitalizing previously purchased mining rigs to reach our goal of 23 shutdowns by the middle of this year and improving our performance so that we are more effective and efficient.” – stated the President Executive teal.

Marathon Digital also reduced debt by $50 million and canceled its credit facility as Silvergate Bank collapsed during the first quarter.