Bitcoin production growth and capital strategy guiding Marathon Digital: CEO
A combination of more hash rate coming online from mining plants and a price protection approach is shielding Bitcoin (BTC) mining firm Marathon Digital Holdings (Nasdaq: MARA) through the bear market, told Cointelegraph its CEO Fred Thiel.
In an exclusive interview during the 2023 Bitcoin Conference in Miami, Thiel disclosed the strategy behind Marathon's figures in the first quarter of 2023, where the firm reduced its net loss from $12.9 million ($0.12 per share) from Q1 2022, to $7.2 million ($0.05 per share) this year.
Marathon is offsetting lower Bitcoin prices with production increasing. It reported a quarterly record of 2,195 BTC mined over the first three months of the year, worth above $60 million at the time of writing. "We are now operating at somewhere of 14.0 [Exhash/second (EH/s)] hash rate, which is two times more than where we were at the end of last year," said Thiel about the 74% increase in production, claiming Marathon should achieve 23.0 EH/s in hash rate in the coming months.
Last year's crypto winter added another pressure on Bitcoin mining companies. In December, Core Scientific filed for Chapter 11 bankruptcy, while Greenridge received a $74 million debt restructuring lifeline from New York Digital Investment Group to survive amid Bitcoin's value decline.
Although Bitcoin's price also affected its quarterly results, Marathon managed to reduce its debt in March amid the banks collapsing in the United States. The mining firm paid off a term loan with Silvergate Bank, freeing up the 3,132 Bitcoins held as collateral for the loan. At that time, Marathon said the move would eliminate $50 million worth of debt and reduce its annual borrowing cost by $5 million.
Related: Contagion engulfs Bitcoin
Read more on cointelegraph.com
