U.S. Mining Company Marathon Now Holds 8,133 BTC. And They’re Not Selling It

In their December report, Marathon Digital Holdings announced their total BTC holdings. And assured their investors that they were not selling any of it any time soon. This is particularly interesting considering the company bought “a record number” of S19s in December. Reportedly, they got a giant loan using Bitcoin as collateral. An operation we’ll see a lot more in the near future throughout the industry. 

The report quotes Fred Thiel, Marathon’s CEO, in a celebratory mode. “2021 was a transformative year for Marathon as we increased our hash rate 1,790% and increased our bitcoin production 846% year-over-year to 3,197 self-mined BTC.” Staggering numbers that show the size of the Bitcoin mining business.


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As for their plans, the report says:

“The Company last sold bitcoin on October 21, 2020, and since then, has been accumulating or “hodling” all bitcoin generated. As a result, Marathon currently holds approximately 8,133 BTC, including the 4,813 BTC the Company purchased in January 2021 for an average price of $31,168 per BTC.”

Of course, they’re not alone. NewsBTC documented the trend throughout the whole year. 

Most Miners Are Holding Strong

One of the first persons to spot the trend was Lex Moskovski. In February, the analyst reported on “the first day since Dec, 27 when Miners Position change turned positive.” 

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Approximately four months ago, NewsBTC used data to find a possible explanation:

“Data shows that miner profitability has dropped in comparison to the last time that bitcoin was at this price. The profitability for bitcoin back in April at $50K had been 40% higher than it is right now when bitcoin hit $50K again. This means that miner profitability is hitting the lows at all-time highs.

This drop in profitability has seen miners refusing to sell the BTC they are rewarded with for mining blocks. Instead choosing to hold these coins in wait for much higher prices.”

Miner profitability might be decreasing, but, the business is still a long way from turning red. Especially for a giant operation like Marathon. In a recent interview that NewsBTC reported on, Fred Thiel said.

“Thiel expressed that, factoring operational mining costs (energy plus hosting), Bitcoin’s breakeven rate is roughly $6,500, meaning that the digital coin would need to drop at least 80% for Marathon to face challenging difficulties.”

Less than three months ago, NewsBTC reported on another set of data that showed the same phenomenon:

“As pointed out by a CryptoQuant post, BTC miner reserves continue to trend sideways amid the coin’s strong move up. The “miner reserve” is a indicator that shows the total amount of Bitcoin that miners are currently holding in their wallets. An increase in the metric’s value suggests miners think the coin’s value will go up in the near future, hence they are stocking up on it.”

BTCUSD price chart for 01/05/2021 - TradingView

BTC price chart for 01/05/2021 on FX | Source: BTC/USD on TradingView.com

The Marathon Mining Company’s Future

The company’s recent billion-dollar investment is a play for the future. Especially considering just when those machines will arrive.

“On December 23, 2021, Marathon announced that it had entered into a contract with BITMAIN to purchase a record number of ANTMINER S19 XP (140 TH/s) bitcoin miners, all of which are currently expected to ship from BITMAIN between July 2022 and December 2022.”

The chip shortage is real, people. If an order this size can only be fulfilled in six to twelve months, something’s up. Also, by the looks of it, the ASIC manufacturing business might be even more profitable than Bitcoin mining.

Featured Image by Mārtiņš Zemlickis on Unsplash - Charts by TradingView


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Marathon Digital Holdings Reported 17% Spike In Bitcoin Mining

The Bitcoin mining company, Marathon Digital Holdings recently revealed that the company mined a whopping 265.6 Bitcoins in June alone.

This number of BTC in June alone exceeds what the company had in May by 17%. The total amount for the whole quarter 2 sits at 654.3 Bitcoins.

From the first month of the year to the third month in 2021, the company could produce only 191.7 Bitcoins. However, in the second quarter, the number exceeded the first quarter’s production more than 3 times.

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Related Reading | Report Shows United States At The Top Spot Among Crypto Ready Countries

A brief study of its monthly production since the year started shows that the company produced 50.4 BTC in January. In February, the number decreased to 43.4 BTC. March saw a rise of BTC production to 97.9, concluding the first-quarter figure.

In the second quarter, April production was a total of 162.1 BTC, which was a considerable increase from March.

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Then in May, Marathon produced 226.6 BTC and 265.6 BTC in June. Each month in the second quarter saw a huge spike in its BTC production, thereby amounting to a total of 654.3 Bitcoins.

Marathon Digital Records An Increase In Bitcoin Holdings 

According to the publicly traded firm, its BTC holdings have increased considerably. It holds 5784 bitcoins worth $201.6 million according to the July BTC price of $34,855/BTC.

Marathon Digital Holdings Reported 17% Spike In Bitcoin Mining

Marathon Digital Holdings Reported 17% Spike In Bitcoin Mining

Bitcoin is following a downward trend after dropping by 4% on the daily chart | Source: BTCUSD TradingView.com

The company also stated that its holdings include the 4,182 BTC purchased 6 months ago in January 2021 as an effort to become a “pure-play Bitcoin investment option”. The company will share a report of its earnings by next month.

Related Reading | Polygon Opens Vault On MakerDAO, Commits $50 Million Worth Of Matic Tokens

Another important piece of information in the report is that Marathon Digital has increased its fleet of miners to 19,395. In June, the company added 1720 miners as part of its goals to install above 100,000 before quarter 2 of 2022.

The crypto-mining company aims to increase its hash-rate power to 10.37 EH/s (exahashes per second). For now, the miners working for the company are generating 2.09 EHs.

Marathon Digital To Install More Mining Equipment

Also, in the report, Marathon Digital disclosed that 18,702 S-19 Pro ASIC miners came from Bitmain while 1056 Pro ASIC Miners are still on the way. Also, the company revealed that it had constructed containers for mining rigs at its facilities in Montana and Hardin.

According to the mining company, 12,000 miners will be added at the Hardin location in September end. It would also place 73,000 miners in Texas, where Compute North is hosting a 300-megawatt facility for them.

While speaking about the company’s recent surge in Bitcoin production, the CEO Fred Thiel disclosed that Marathon had upgraded and carried out routine maintenance on its systems.

Related Reading | TA: Bitcoin Correcting Gains, What Could Trigger Fresh Rally

According to Thiel, the aim was to prepare for the global hashrate, which may start declining. The company also selected May, June, and July for the upgrade because there’s always a slower delivery in them.

Due to the upgrades and routine maintenance operation, the Marathon CEO states that the company is now positioned to produce more Bitcoins. He also maintained that the company is ready to utilize favorable mining conditions as they surface.

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