Major Bitcoin mining company Marathon Digital increased its Bitcoin holdings by 707 BTC despite a quarterly decline in production.
The mining company Marathon
Marathon Digital, a cryptocurrency mining company, has reported a net loss of $191.6 million. This loss has been incurred as the company’s Bitcoin production shrinks.
Company reported that it produced 707 Bitcoin in the second quarter of this year. That is a decrease of 44% compared to the previous quarter. In the first quarter of 2022, the company produced almost 1,259 Bitcoin.
The quarterly decline in production is primarily attributed to the lengthy power-on delays in Texas and weather-related issues in Montana. However, despite the problems, Marathon already produced 2,038 Bitcoin this year. This is an increase of 58% compared to the same period last year.
Delays in power supply, maintenance and weather issues in Montana, and a roughly 56% drop in Bitcoin’s price during the quarter. All of these factors had a serious impact on our Bitcoin production and financial results.
– Said Fred Thiel, CEO of Marathon.
However, production is expected to improve this quarter. Recently, mining farms in Texas have become operational after gaining much-anticipated tax-exempt status for wind farms.
Marathon shares are up 1.84% to $14.43, data from Nasdaq. However, the stock has lost almost 59.20% of its value this year.
Sales pressure among miners
Despite a huge drop in revenue, Marathon retains most of its Bitcoin assets. This is in contrast to many other listed mining companies.
Marathon’s total Bitcoin holdings rose to 10,055 BTC, including the new 707 Bitcoin this quarter. These assets are held directly by the NYDIG digital assets fund.
However, the same buying pressure may not be seen with other miners in the industry. That’s because Bitcoin miners sold 400% of their production in June, data from Arcane shows.
In particular, publicly traded Core Scientific sold $165 million worth of Bitcoin to increase its liquidity. Bifarms sold nearly half of his property to pay off debt.