Tag: Marathon Digital Holdings

Marathon Digital Admits to Mining an Invalid Bitcoin Block

by Blockchain News

Key Takeaways

* Marathon Digital Holdings confirmed mining an invalid Bitcoin block due to an internal bug during an experiment.

* The mishap occurred on Sept 26, stressing Bitcoin’s robust network security that rectified the anomaly.

Marathon Digital Holdings (NASDAQ: MARA) has publicly acknowledged the mining of an invalid block on the Bitcoin network during a recent experimental attempt to optimize the company’s mining operations. The disclosure came through a series of tweets on Sept. 28, 2023, from the company’s official Twitter handle, @MarathonDH, where they affirmed that the error was not an attempt to modify the Bitcoin Core.

The Misstep and Immediate Rectification

The error transpired on Sept. 26 at 9:42 pm UTC on block 809,478, as per data from Mempool.space. It was attributed to a “transaction ordering issue” by several Bitcoin developers and BitMEX Research. Notably, the blunder emerged from Marathon’s internal development environment and was unrelated to their production pool or Bitcoin Core, the primary software used for connecting to the Bitcoin network. Marathon accentuated that the anomaly was recognized and corrected promptly, highlighting the Bitcoin network’s sturdy security framework that identified and rectified the error.

The invalid block mining incident underscores the importance of rigorous testing before deploying experimental features on the live network. Bitcoin analyst Dylan LeClair recommended that such experimental endeavors should initially be conducted on a testnet to prevent potential disruptions on the mainnet.

Community’s Mixed Response

The incident drew a mixed response from the community. While it spotlighted the robustness of Bitcoin’s security protocols, it also led to suggestions for more cautious experimental approaches in the future. Marathon stressed that Bitcoin “functioned exactly as designed” by excluding the invalid block, reinforcing the network’s ability to self-correct and maintain its integrity amidst unforeseen errors.

Disclaimer & Copyright Notice: The content of this article is for informational purposes only and is not intended as financial advice. Always consult with a professional before making any financial decisions. This material is the exclusive property of Blockchain.News. Unauthorized use, duplication, or distribution without express permission is prohibited. Proper credit and direction to the original content are required for any permitted use.

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Coinbase Executives Visit UAE to Explore Potential for Crypto Operations

by Blockchain News

Executives from the US-based cryptocurrency exchange Coinbase, including CEO Brian Armstrong, have visited the United Arab Emirates (UAE) to explore the potential for crypto operations in the region. The visit comes as Coinbase seeks to expand its international presence and establish strategic hubs in key locations around the world.

During the visit, Armstrong met with policymakers and spoke at the Dubai FinTech Summit, highlighting the growing interest in the region as a destination for crypto-related businesses. The UAE has become increasingly attractive to firms in the crypto industry due to its favourable regulatory environment and abundant sources of energy, which can be used to power energy-intensive operations such as crypto mining.

Coinbase’s visit coincides with a partnership between Marathon Digital Holdings and Zero Two to create a large-scale immersion Bitcoin-mining facility in Abu Dhabi. The joint venture, called the Abu Dhabi Global Markets JV Entity, will comprise two mining sites with a combined 250-megawatt capacity and will be powered by excess energy from Abu Dhabi’s grid.

Marathon Digital’s experience in developing a custom-built immersion solution for cooling mining rigs will be key to the success of the project, particularly given the challenges posed by the desert climate in Abu Dhabi, where temperatures can reach up to 28 degrees Celsius (82 degree Fahrenheit).

The joint venture between Marathon Digital and Zero Two aims to take advantage of Abu Dhabi’s excess energy to power the mining facilities, with a view to increasing sustainability and base load. The use of liquid cooling solutions will help to overcome the challenges of the desert climate, where high temperatures make traditional air cooling methods infeasible.

Overall, the partnership between Marathon Digital and Zero Two represents a significant step forward in the development of the crypto mining industry in Abu Dhabi, as the two companies look to capitalize on the region’s excess energy and overcome the challenges of the desert climate. Coinbase’s visit to the UAE highlights the growing interest in the region as a destination for crypto-related businesses, and could pave the way for further expansion in the Middle East.

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Marathon Digital and Zero Two Partner for Abu Dhabi Bitcoin-Mining Facility

by Blockchain News

Marathon Digital Holdings and Zero Two have announced a partnership to create a large-scale immersion Bitcoin-mining facility in Abu Dhabi. The joint venture, called the Abu Dhabi Global Markets JV Entity, will be based in Mina Zayed and Masdar City in the United Arab Emirates, and will comprise two mining sites with a combined 250-megawatt capacity. Marathon and Zero Two plan to power the facilities with excess energy from Abu Dhabi’s grid, claiming it will increase its base load and sustainability.

According to Marathon Digital, crypto mining in the desert climate of Abu Dhabi, where the average annual temperature is roughly 28 degrees Celsius (82 degree Fahrenheit), was often “infeasible.” However, the company said it had helped develop a “custom-built immersion solution” to cool mining rigs at the proposed facilities, suggesting a liquid-cooling solution.

The two firms expect both Abu Dhabi facilities to be online by 2024 and produce a combined hash rate of roughly 7 EH/s. Ownership of the project will be split between Zero Two and Marathon Digital, with the two companies controlling 80% and 20%, respectively.

The move comes as executives from United States-based crypto exchange Coinbase visited the UAE to test the potential of the region as a “strategic hub” for its international operations. Coinbase CEO Brian Armstrong met with policymakers and spoke at the Dubai FinTech Summit.

The joint venture between Marathon Digital and Zero Two aims to take advantage of Abu Dhabi’s excess energy to power the mining facilities, with a view to increasing sustainability and base load. The use of liquid cooling solutions will help to overcome the challenges of the desert climate, where high temperatures make traditional air cooling methods infeasible.

Marathon Digital’s experience in developing a custom-built immersion solution for cooling mining rigs will be key to the success of the project. The two firms plan to have both facilities up and running by 2024, with a combined hash rate of roughly 7 EH/s.

Meanwhile, Coinbase is exploring the potential of the UAE as a strategic hub for its international operations. The visit by the company’s executives, including CEO Brian Armstrong, highlights the growing interest in the region as a destination for crypto-related businesses.

Overall, the partnership between Marathon Digital and Zero Two represents a significant step forward in the development of the crypto mining industry in Abu Dhabi, as the two companies look to capitalize on the region’s excess energy and overcome the challenges of the desert climate. With the backing of both firms, the joint venture is well-positioned to succeed and could pave the way for further expansion in the Middle East.

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

by NEWSBTC

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.

https://twitter.com/WhatBitcoinDid/status/1478354274656657427

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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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https://twitter.com/mskvsk/status/1365557599358320642

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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