By Michael Scott
Global largest Bitcoin mining firm Marathon Digital Holdings sold a majority of the Bitcoin mined in May. The Bitcoin mining firm portrays adjusted operations also implemented by other miners post the April halving event.
The Nasdaq-listed mining firm trading under ticker symbol MARA revealed selling 63% of the Bitcoin produced since the halving event.
Marathon Digital Sells 390 Bitcoin
Marathon Digital disclosed in its monthly report that it sold 390 Bitcoin, which accounts for 63% of May’s 616 BTC mined in the entire month. The report further reveals the firm holding $290.4M in cash and cash equivalents, representing a 100% increase from $145.3 million in April.
A comparative outlook of the Bitcoin sales shows Marathon units stand out relative to other miners’ units. Riot Platforms Inc. (RIOT) did not sell any of the 215 Bitcoin mined in May. Another Nasdaq-listed firm CleanSpark Inc. (CLSK) only disposed of 2.43 units of the 417 Bitcoin produced in May.
The sale of May production indicates miners are adjusting operations after the Bitcoin halving a quadrennial event where the rewards were reduced by half after 210,000 blocks, estimated at roughly four years.
The recent halving occurred on April 20, when the miners’ rewards for every block mined were reduced from 6.25 to 3.125 Bitcoin.
Marathon Digital Expansion
Marathon Digital chair and chief executive Fred Thiel indicated that May saw the firm mitigate the effect of April halving through higher blocks won. In particular, the firms realized a 32% increase in blocks won to 170 relative to April.
The adjustment translated to 616 Bitcoin production, thereby minimizing the decline by only 27%. Thiel attributed the impressive performance to Marathon energizing 5,000 more miners in May, with another 9,000 miners reinstalled within the Ellendale facility and awaiting return to optimal energization.
Marathon saw its operating fleet increase in May to 246,000 Bitcoin miners with the capacity to produce 30.6 EH/s. The firm is on course to realize 29.3 EH/s from its 237,000 miners at full operation as its peak overall hash rate increased to 28.1 EH/s.
A glance at the Bitcoin mining industry reveals widespread efforts by firms to expand fleets and optimize efficiency for them to retain competitiveness amid rewards shrink.
Like Marathon’s adjustment, CleanSpark is actively pursuing the M&A space. The firm anticipates concluding the acquisition of Wyoming locations while actively pursuing additional opportunities.
Marathon confirmed exploring opportunities overseas, which is evident in the partnership with Kenya’s Ministry of Energy and Petroleum to help optimize the utilization of renewable energy projects in the country.
Marathon also unveiled a pilot project within Paraguay to optimize the South American country’s energy structure. Thiel hailed the initiatives by affirming the firm’s devotion to having half of the revenues from the overseas initiatives by 2028.
Marathon Digital is leading other Bitcoin miners in optimizing energy infrastructure by assuming the flexible loads’ role to stabilize the grid.
The Bitcoin miners readily adjust energy consumption relative to the grid demands. The process eases the absorption of excess renewable energy during high supply and lower consumption when the grid witnesses peak load demand.
Market Activity of Bitcoin Mining Firms
Meanwhile, Marathon Digital stock is up by 2.42% in the past 24 hours to exchange hands at $20.31 as per Google Finance. A comparison with peers shows CleanSpark (CLSK) has rallied 8.15% to exchange hands at $17.25 while Riot Platforms (RIOT) increased by 6.51% to $10.64 as per Google Finance data.
Marathon Digital has seen its stock rally 21% in the past six months in the process of lifting the total market capitalization of the miner to $5.74 billion.
In comparison, CleanSpark’s upward steam is better, with its stock surging 68.29% in the past six months to $10.64, pushing the miner’s market value to $3.93 billion. Riot Platforms stock faltered in the same period, plunged 30.18%, and exchanged hands at $10.64, eroding the market value to $3.07 billion.
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