Marathon set a new record in December after mining 1,853 bitcoins.
Marathon Digital achieved a record production of 1,853 Bitcoin (BTC) in December 2023, marking the highest monthly total ever recorded by a public BTC mining company.
This growth represents a 290% increase from the previous year and a 56% increase from the previous month. Marathon Chairman and CEO Fred Thiel attributed this achievement to the company’s strategic expansion and operational efficiencies. He said:
“December’s record production is a testament to our growth strategy and our commitment to leading the Bitcoin mining industry.”
Thiel also highlighted the company’s future growth goals, which aim to increase the active hashrate by 30% in 2024.
Hash rate rises
A key factor contributing to the record production was Marathon’s increased average operating hash rate, which increased 18% month over month to 22.4 exahashes per second (EH/s).
This growth was primarily driven by Marathon’s strategic expansion, including powering approximately 8,900 Bitcoin mining machines at Applied Digital’s facilities in Texas.
This increased the company’s operating fleet by 7% to approximately 199,200 Bitcoin miners. This miner can theoretically produce around 24.7EH/s, depending on the manufacturer’s specifications.
Looking ahead, Marathon plans to continue to focus on growth and efficiency. The company’s recent acquisitions of Texas and New England properties, expected to be completed in January 2024, will improve its cost structure and increase near-term growth potential.
International expansion, such as developments in Abu Dhabi and a new joint venture in Paraguay, has also played a pivotal role in Marathon’s growth strategy. The company is also actively investing in using alternative energy sources in its operations.
The company aims to achieve 30% growth in active hash rate in 2024 and expects to reach 50 exahashes in the next 18-24 months.
BTC Fee
Marathon’s success goes beyond its mining capabilities. The company’s innovative approach to capturing transaction fees has given it a competitive advantage.
Marathon’s mining pool, MaraPool, collected over 380 BTC in transaction fees during the month, representing 22% of total Bitcoin production. This is a significant increase compared to 12% of the previous month’s production.
Owning and operating its own pool has been a key competitive advantage for Marathon, allowing it to capture significant transaction fees that are now available to miners.
Financially, Marathon is in a solid position, with total cash and Bitcoin holdings valued at approximately $1 billion as of the end of 2023. The company’s strategic approach to financial management, including selling off some of its Bitcoin holdings to cover operating expenses, includes: It has contributed to our strong financial position.
In December 2023, Marathon sold 704 BTC, equivalent to approximately 38% of its monthly production, to cover operating costs. This strategy is part of Marathon’s broader plan for monthly operational support, financial management and general corporate purposes.
