Marathon Digital Holdings Provides Update on Its Bitcoin Mining Operations in Montana
June 28 2022 - 4:05PM
Marathon Digital Holdings, Inc.
(NASDAQ:MARA) ("Marathon"
or "Company"), a leader in supporting and securing the
Bitcoin ecosystem, today disclosed that, as a result of a storm
that passed through Hardin, MT earlier this month, the Company’s
mining operations in the region are currently without power and
likely to remain offline until the damaged power generating
facility can be repaired. Based on the latest inspection reports,
Marathon’s miners in Montana may have sufficient power to come back
online in a reduced capacity as early as the first week of July.
On Saturday, June 11, a severe storm passed through
the town of Hardin, damaging several structures, including the
power generating facility that supplies Marathon’s bitcoin mining
operations with power. Since the storm passed, inspections to
assess the damage of the power plant have been ongoing. In the past
few days, Marathon received a damage assessment. According to the
findings, the plant’s cooling towers are in need of repair. Initial
electrical tests on Marathon’s miners have been positive,
indicating that the majority of the Company’s miners were not
materially damaged by the storm.
According to reports the Company has received in
the past few days, the power generating station may be repaired
enough for Marathon’s miners to come back online in a reduced
capacity as early as the first week July. While repairs are ongoing
in Montana, Marathon has pointed its remaining active miners,
representing approximately 0.6 EH/s, away from the Company’s mining
pool, MaraPool, and towards a third-party mining pool in order to
increase the probability of earning bitcoin.
Prior to the storm, the 30,000 miners Marathon had
deployed in Montana represented over 75% of the Company’s active
fleet. With these miners offline, Marathon’s bitcoin production is
expected to be significantly reduced until repairs to the power
generating facility in Montana can be completed or until the miners
can be relocated to new facilities. As announced on April 5,
Marathon was already preparing to move miners from this facility to
more sustainable sources of power during the third quarter of this
year. The Company is currently evaluating the possibility of
expediting the move of its miners from Montana to new hosting
locations.
“The severe storm in Montana unexpectedly decreased
our hash rate in June and presented us with a new challenge that we
are actively working to overcome,” said Fred Thiel, Marathon’s
chairman and CEO. “Bringing miners fully back online will take
time, and we are committed to doing everything we can to rebuild
our hash rate and to improve our bitcoin production. As part of
that process, we have redirected our active miners, which represent
approximately 0.6 exahash, to point towards a third-party mining
pool, so that we can improve our probability of earning bitcoin
while we work to bring the Hardin miners back online. Separate from
this event, construction and installations in Texas have continued
as scheduled, and given the current macro environment, our pipeline
of potential new hosting arrangements remains strong. We appreciate
the continued support of our shareholders as we work through this
process.”
Investor Notice 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 fiscal year ended December 31, 2021, filed with the
SEC on March 10, 2022 and Quarterly Report on Form 10-Q for the
fiscal quarter ended March 31, 2022, filed with the SEC on May 5,
2022. If any of these risks were to occur, our business, financial
condition or results of operations would likely suffer. In that
event, the value of our securities could decline, and you
could lose part or all of your investment. The risks and
uncertainties we describe are not the only ones facing us.
Additional risks not presently known to us or that we currently
deem immaterial may also impair 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 results in the future. Future changes in the
network-wide mining difficulty rate or Bitcoin hash
rate may also materially affect the future performance of
Marathon's production of bitcoin. Additionally, all discussions of
financial metrics assume mining difficulty rates as of June 2022.
The total network’s hash rate data is calculated from a third-party
source, which is available here:
https://www.blockchain.com/charts/hash-rate. Data from third-party
sources has not been independently verified. See "Forward-Looking
Statements" below.
Forward-Looking
Statements 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 can
be identified by the use of words such as “may,” “will,” “plan,”
“should,” “expect,” “anticipate,” “estimate,” “continue,” or
comparable terminology. Such forward-looking statements are
inherently subject to certain risks, trends and uncertainties, many
of which the Company cannot predict with accuracy and some of which
the Company might not even anticipate and involve factors that 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 advised to consider the
factors listed above together with the additional factors under the
heading “Risk Factors” in the Company's Annual Reports on Form
10-K, as may be supplemented or amended by the Company's Quarterly
Reports on Form 10-Q. The Company assumes no obligation to update
or supplement forward-looking statements that become untrue because
of subsequent events, new information or
otherwise. About Marathon Digital
Holdings Marathon is a digital asset technology
company that focuses on supporting and securing the Bitcoin
ecosystem. The Company is currently in the process of becoming one
of the largest and most sustainably powered Bitcoin mining
operations in North America, while remaining asset light.
Marathon Digital
Holdings Company Contact: Telephone:
800-804-1690Email: ir@marathondh.com
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