Marathon Digital Mined 21% Less BTC in June due to Extreme Weather Conditions in Texas

One of the leading cryptocurrency mining companies – Marathon Digital – produced 979 BTC in June, 21% less than the 1,245 BTC mined in May.

As of the end of last month, the company owned 12,538 BTC, making it one of the biggest corporate holders of the primary digital asset.

The June Figures

The US-based BTC miner announced that the extremely hot weather in Texas last month and the emergence of Ordinals, which “significantly increased transaction fees,” have negatively impacted the bitcoin production.

Recall that temperatures in the Lone Star State exceeded 35 degrees (Celsius) during the second part of June, which caused some local cryptocurrency mining firms to temporarily halt activities to preserve the electricity network.

Despite the reduced production, CEO Fred Thiel explained that Marathon Digital increased its operational hash rate by 16% month-over-month to 17.7 exahashes and its installed hash rate to 21.8 exahashes.

“The final steps to achieving our 23 EH/s goal are in Ellendale, ND, and Garden City, TX. The final building in Ellendale is expected to come online this month, and final Garden City tie-in is also expected within that same period,” he added.

The company also added 18,500 BTC miners at Applied Digital’s facilities in Ellendale, North Dakota, thus increasing the total fleet to 149,900 machines. 

Marathon Digital usually sticks to a HODL strategy. However, it parted with 700 BTC in June and displayed intentions to sell more of its assets in the future “to support monthly operations, manage its treasury, and for general corporate purposes.” 

As of the end of last month, the firm had 12,538 BTC (equaling over $385 million at current prices). It ended June with $113.7 million in unrestricted cash and cash equivalents on its balance sheet.

Big Success in Q1

Marathon Digital experienced operational difficulties throughout 2022, prompted by the prolonged bear market, massive storms, and exposure to the distressed data center – Compute North.

Nonetheless, it started the new year on the right foot, mining 2,195 BTC during the first quarter (significantly more than the 1,259 BTC mined in Q1, 2022).

“During the first quarter of 2023, we made notable progress executing our two primary initiatives for the year, which are to energize our previously purchased mining rigs to reach our target of 23 exahashes by the middle of this year and to optimize our performance so that we are both more effective and more efficient.” – CEO Thiel stated.

Marathon Digital also reduced its debt by $50 million and terminated its credit facilities with the collapsed Silvergate Bank during Q1.