Despite the fact that the Bitcoin price has fallen so far that the average miner is currently operating at a loss, Marathon Digital continues to doggedly and accumulate Bitcoin.
Charlie Schumacher, the vice president of corporate communications, says the company is “not immune to the macro environment, but is well positioned to weather the current storm.”
Low cost of producing a Bitcoin
According to the vice president, Marathon Digital can continue to mine because it is well prepared. As an example, Schumacher reveals that Marathon Digital spent about $6,200 producing a Bitcoin in the first quarter of 2022. “We also have a fixed price for electricity, so we are not dependent on changes in the energy markets,” said Schumacher about the situation at Marathon Digital.
To this, Schumacher adds that Marathon Digital has a focus on Bitcoin production and is trying to accumulate as much Bitcoin as possible. All based on the belief that the price will rise again in the future. “Because we report on our financial situation in dollars, the Bitcoin price always has a big impact on our results. To create an objective picture, we try to focus on our Bitcoin production,” Schumacher continued.
No Bitcoin sold since October 2020
In a statement June 9th Marathon Digital has once again underlined how much the focus is on the accumulation of Bitcoin. From October 2020 through at least June 1, 2022, Marathon Digital has not sold any of their 9,941 Bitcoin. At current rates, that Bitcoin represents a value of approximately $200 million.
For Schumacher and Marathon Digital, this is precisely a period to be inventive. If the price of Bitcoin falls, miners will have a hard time and that will push the inefficient parties out of the market. This ensures that the level of difficulty decreases, so that it becomes more attractive for parties such as Marathon Digital to mine again. The Bitcoin hashrate has fallen more than 26,000 exahash per second (EH/s) from its all-time high of June 12 to 205,163 EH/s.
