LAS VEGAS, October 04, 2021 (GLOBE NEWSWIRE) – Marathon Digital Holdings, Inc. (NASDAQ:MARA) (“Marathon” or “Company”), one of the largest self-mining bitcoin companies in North America, today released unaudited bitcoin miner (“BTC”) production and installation updates for September 2021 and announced a new $ 100 million revolving line of credit (“RLOC”) with Silvergate Bank, a leading provider of innovative financial infrastructure solutions and services for the growing digital currency industry.
A graphic accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/da19099a-6fda-410e-912b-c6c637e71221
Company highlights as of October 1, 2021
- Produced 1,252.4 new bitcoins minted in Q3 2021, increasing production by 91% quarter over quarter
- Produced 340.6 new bitcoin minted in September 2021, bringing total bitcoin holdings to around 7,035 with a fair market value of around $ 336.3 million
- Cash on hand was around $ 32.9 million and total liquidity, defined as cash and bitcoin holdings, was around $ 369.1 million.
- Received approximately 26,960 leading ASIC miners from Bitmain to date with an additional 8,459 ASIC miners currently in transit
- The existing mining fleet consists of 25,272 active miners producing around 2.7 PE / s
- DMG Blockchain Successfully Added to MaraPool
- On October 1, 2021, secured a $ 100 million revolving line of credit, secured by bitcoin and USD, with Silvergate Bank
Bitcoin production update
As of October 1, 2021, the Marathon mining fleet had produced approximately 2,098 new bitcoins in 2021. Per month, the company’s bitcoin production was as follows:
A graphic accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/1fd698f5-758e-4eac-a252-1e7ec9c49965
Source of total network hash rate: https://www.blockchain.com/charts/hash-rate
As a result, Marathon currently holds around 7,035 BTC, including the 4,812.66 BTC that the Company purchased in January 2021 for an average price of $ 31,168 per BTC. As of October 1, 2021, the fair market value of a bitcoin was approximately $ 47,798, implying that the approximate fair market value of Marathon’s current bitcoin holdings is approximately $ 336.3 million.
Miner installations and hash rate growth
As of October 1, 2021, Bitmain had delivered approximately 26,960 leading ASIC miners to the company’s mining facility in Hardin, MT. In September, global logistics issues began to impact shipments, lengthen delivery times, and affect the initial deployment schedule for miners. While deliveries of miners may continue to fluctuate in the near term, based on current estimates, the Company still expects all previously purchased minors to be delivered by mid-2022. At that time, the Company’s mining fleet is expected to consist of approximately 133,000 miners, generating approximately 13.3 PE / s.
Commercial line of credit with Silvergate Bank
On October 1, 2021, Marathon secured a $ 100 million revolving line of credit from Silvergate Bank, a leading provider of innovative financial infrastructure solutions and services for the growing digital currency industry. Under the terms of the agreement, Marathon may use the RLOC for general corporate purposes related to the Company’s bitcoin mining activities, including, but not limited to, the acquisition of mining equipment. bitcoins. The RLOC, which is secured by bitcoin and USD, will initially be available for one year and may be renewed annually by agreement between Silvergate Bank and Marathon.
“In the third quarter, we increased our bitcoin production by 91% quarter-over-quarter to 1,252 BTC, bringing our total bitcoin holdings to around 7,035 BTC,” said Fred Thiel, CEO of Marathon. “Our September production numbers were impacted by a significant increase in the total network hash rate, the ‘luck’ factor inherent in bitcoin mining and two days of scheduled downtime at the Hardin power plant. While a certain amount of downtime and “luck” is always present in bitcoin mining, affecting short-term results, we believe our production will become more stable over time as we continue. to bring new miners online and scale up.
“Bitmain continues to produce miners at a rate in line with our expectations, but global logistics issues have started to complicate the shipping process and lengthen deliveries. While the rate at which we receive miners has fluctuated and may continue to do so in the short term, we remain optimistic that we are well positioned to increase our hash rate to 13.3 EH / s by the middle. from 2022.
“Due to Marathon’s positive track record, our growth trajectory, our position as one of the largest bitcoin holders among publicly traded companies in the United States, and the broader maturation of our industry,” we were able to secure a revolving line of credit of $ 100 million. with Silvergate Bank, which is secured by our bitcoin and USD holdings. This instrument is consistent with our strategy to focus on agility, as it improves our ability to act opportunistically and effectively for both our company and our shareholders. By putting this line of credit in place, we believe Marathon is in a better position to continue to grow in the coming quarters. “
Notice to Investors
Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described under “Risk Factors” in Item 1A of our most recent Annual Report on Form 10-K for the year ended. December 31, 2020. If any of these risks were to occur, our business, financial condition or results of operations would likely be adversely affected. In this case, the value of our securities could fall and you could lose some or all of your investment. The risks and uncertainties we describe are not the only ones we face. Additional risks that we are not currently aware of or that we currently consider to be negligible may also adversely affect our business operations. In addition, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate future results. Future changes in the network-wide mining difficulty rate or Bitcoin hash rate can also significantly affect the future performance of Bitcoin production by Marathon. Additionally, all discussion of financial metrics assumes mining difficulty rates as of October 2021. Total network hash rate data is calculated from a third-party source, available here: https: / /www.blockchain.com/charts/hash- rate. Data from third-party sources has not been independently verified. See “Safe Harbor” below.
Statements made in this press release include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by the ‘use of words such as “may”, “will”, “plan”, “should”, “expect”, “anticipate”, “estimate”, “continue” or similar terminology. These forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which cannot be predicted with precision by the Company and some of which may not even be anticipated and involve factors which may cause actual results to differ materially from those projected or suggested. Readers are cautioned not to place undue reliance on these forward-looking statements and are encouraged to consider the factors listed above as well as additional factors under the heading “Risk Factors” in the Company’s annual reports on Form 10-K , as they can be completed. or amended by the Company’s quarterly reports on Form 10-Q. The Company assumes no obligation to update or supplement any forward-looking statements that become false due to subsequent events, new information or otherwise.
About Marathon Digital Holdings
Marathon is a digital asset technology company that operates cryptocurrencies with a focus on the blockchain ecosystem and digital asset generation.
Contact of Marathon Digital Holdings:
E-mail: [email protected]