Marathon Digital Holdings, one of the leading bitcoin miners, mined 687 BTC in January 2023, an increase of 45% compared to the last month of 2022.
However, the company changed its strategy of not selling and parted with 1,500 BTC to cover operating expenses.
Change of plans
Marathon began year by producing 687 BTC in January, a significant increase from 475 BTC in December 2022. Fred Thiel, President and CEO, explained that the better results were due to the “ability of the team to work together” with the new hosting provider in McCamey, Texas
“We believe that improvements in our operating efficiency, coupled with the proactive steps we have taken to strengthen our balance sheet, have placed Marathon in a strong position to achieve our 2023 growth and operating goals,” he said.
However, the rise in bitcoin’s price during the first month of 2023 pushed Marathon to sell 1,500 BTC of its holdings. The funds generated will cover operating expenses and will be used for general corporate purposes. This is the first time since October 2020 that the company has decided to withdraw a part of its reserve.
His total holdings amount to 11,418 BTC, of which 8,090 BTC (about $190 million at current prices) have no restrictions. In addition, Marathon ended the month with $133.8 million in cash on hand without restriction.
The company aims to optimize its mining throughput throughout 2023 and install around 23 exhashes of computing power by mid-year.
“We remain confident in our ability to build Marathon into one of the largest and most energy efficient Bitcoin mining operations globally,” he announced.
The crypto miner, which entered the Nasdaq in 2013, saw its shares rise last month. MARA is currently trading at approximately $8, an increase of 135% compared to early 2023.
Exposure to the computational north
As CryptoPotato reported In December last year, Marathon considered acquiring struggling data center Compute North Holdings. He hired professionals and discussed the matter with Guggenheim Partners and Weil Gotshal & Manges.
Compute North was one of Marathon’s primary hosting providers, installing more than 68,000 bitcoin mining machines at its Texas wind farms in the third quarter of 2022. Due to regulatory issues, 40,000 of those units remained offline.
the data center archived for bankruptcy protection in late September, while Marathon revealed a total exposure of more than $80 million.
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