Marathon Digital, one of the largest mining companies in the bitcoin ecosystem, has announced its financial results for the corresponding second quarter of the year. The company revealed that it recorded an impairment of $127.6 million on its bitcoin holdings due to the drop in the price of bitcoin during this period, despite an 8% increase in production when compared to the second quarter of 2021.
Marathon Digital recorded an impairment of $127.6 million
Marathon Digital, one of the largest public bitcoin mining companies, has announced its financial results for the second quarter of 2022. In its recent earnings release, the company posted negative financial results, posting an impairment of $127.6 million due to the decline in the bitcoin price. However, the company produced 707 bitcoins during the period, a figure that is 8% higher than what it produced in the second quarter of last year.
However, this 707 bitcoin production was 44% lower than the 1,259 bitcoins the company produced in the previous quarter. Marathon CEO Fred Thiel attributed the drop to several energy issues that delayed the startup of mining machines at its Texas operations, as well as weather issues that affected the power generation process at its Montana facility.
Given the groundwork laid during the quarter and the progress made since then, we are optimistic that Marathon’s operational and financial positioning is improving.
The company directly held 10,055 bitcoins as of June 30.
Outlook
After many problems in the last quarter, the company is working to improve its situation in the near future. Thiel said that the energization issues at the Texas facility have already been addressed and that 40,000 of the 68,000 miners at the facility are already up and energized, ready to produce bitcoin in the third quarter and improve the company’s capacity.
Thiel also mentioned Marathon’s recent agreement to increase its power capacity to 254 MW, which is needed to reach its goal of having 23.3 EH/s (exahash per second) of bitcoin mining capacity by 2023. The company is also reviewing and replacing parts of its mining fleet to improve efficiency.
Marathon’s CEO concluded on a positive note, stating.
Overall, this progress gives us further confidence that we remain on track to grow our position as a leader in supporting and protecting the Bitcoin ecosystem.
Image credits: Shutterstock, Pixabay, Wiki Commons, rafapress / Shutterstock.com