Marathon Digital Posts Negative Q2 Results, but Increases Bitcoin Production 8% YoY

Marathon Digital, one of the biggest mining companies in the Bitcoin ecosystem, has posted its financial results corresponding to the second quarter of the year. The company revealed that even having increased its production by 8% when compared to Q2 2021, it recorded an impairment of $127.6 million on bitcoin holdings due to the fall of bitcoin prices in this period.

Marathon Digital Registers Impairment of $127.6 Million

Marathon Digital, one of the biggest public Bitcoin mining companies, has released its financial results from the Q2 2022 period. In the recent earnings call, the company posted negative results, reporting an impairment of $127.6 million due to the fall in bitcoin prices. However, the company produced 707 bitcoin during the period, a number that is 8% higher than what the company produced during last year’s Q2.

However, these 707 bitcoin produced constitute a fall of 44% when compared to the 1,259 bitcoin produced by the company in the prior quarter. Marathon’s CEO Fred Thiel attributed this fall to several energy problems that delayed the activation of miners in its Texas operation, and also to weather issues that affected the power generation process in the Montana facility.

Even when the company reported a net loss of $191.6 million, Thiel was positive about the recovery of the company. In a statement, he declared:

Given the groundwork we laid during the quarter and the progress we have made since, we are optimistic that Marathon’s operational and financial positioning is improving.

The company held 10,055 bitcoin directly as of June 30.

Projections for the Future

The company, which had to deal with a slew of problems last quarter, is working to improve its situation in the near future. Thiel remarked that the energization problems in the Texas facility have already been dealt with, and that 40,000 miners out of the 68,000 that are in the facility are already activated and being energized, ready to produce bitcoin for Q3, improving the capacity of the company.

Thiel also referred to the recent deal that Marathon inked to raise its power capacity to 254 MW, which will be needed to reach the goal of having 23.3 EH/s (exahash per second) of bitcoin mining capacity by 2023. The company is also reviewing and substituting part of its mining fleet to achieve better efficiency.

Marathon’s CEO finished on a positive note, stating:

Overall, this progress provides us with added confidence that we remain on track to grow our position as a leader in supporting and securing the Bitcoin ecosystem.