Marathon Digital Holdings Announces Bitcoin Production and Mining Operations Updates for October 2023

Marathon Digital Holdings Inc.

– 1,202 BTC were produced in October 2023 and 9,812 BTC since the beginning of the year

– Energization of Garden City is underway; A full 4.1 EH/s expected by the end of November

– The total value of unrestricted cash and Bitcoin was $620 million as of October 31, 2023

Fort Lauderdale, Fla., Nov. 3, 2023 (GLOBE NEWSWIRE) — Marathon Digital Holdings, Inc. (NASDAQ:MARA) (“Marathon” or “Company”)a leader in supporting and securing the Bitcoin ecosystem, today released unaudited updates for Bitcoin (“BTC”) production and miner deployments for October 2023.

Management commentary
“In October, we increased our active hash rate by 1% to 19.2 exahashes when the facility in Garden City, Texas, where we installed 4.1 exahashes of miners, came online,” said Fred Thiel, Chairman and CEO of Marathon. “Once this facility is fully operational later this month, we will have exceeded our goal of 23 exahash and cemented Marathon as the largest publicly traded Bitcoin miner in North America.

“By increasing our hash rate and further improving our operations at the McCamey, Texas facility and elsewhere, we earned 4.0% of the Bitcoin network’s total available miner rewards and produced 1,202 Bitcoin in October. This sum includes 18 Bitcoins from our 20 percent share in the JV in Abu Dhabi. We now have 2.3 exahashes online in Abu Dhabi as our second, larger facility in Masdar City has begun commissioning. We continue to expect full 7.0 exahashes to be live in the UAE by the end of the year.

“We have also been exploring new mining methods that we believe could allow us to further diversify our operations, reduce our energy costs and improve our sustainable energy mix.” We recently announced a pilot project in Utah using only Landfill methane gas is operated. Naturally produced methane often goes unused, and Bitcoin miners like Marathon are uniquely positioned to help capture this polluting gas and convert it into clean, renewable energy. We look forward to unveiling more of the many innovative mining projects we are exploring in the coming months.”

The story goes on

Operational highlights and updates

Figure 1: US operational highlights

Metric		October 31, 2023				October 31, 2022				%D				October 31, 2023				September 30, 2023				%D
Bitcoin produced – only in the USA			1,184				615				92	%			1,184				1,232				-4	%
Average Bitcoin produced per day			38.2				19.8				92	%			38.2				41.1				-7	%
Share of miner rewards available1			4.0	%			0.7	%			457	%			4.0	%			3.3	%			24	%
Energized Hash Rate (EH/s)2			19.2				7.0				174	%			19.2				19.1				1	%
Average Operational Hash Rate (EH/s)3			17.2				THE								17.2				15.8				9	%
Installed Hash Rate (EH/s)4			23.1				7.0				230	%			23.1				23.1				—	%
1. Defined as the total amount of block rewards, including transaction fees, earned by Marathon during the period divided by the total amount of block rewards and transaction fees granted by the Bitcoin network during the period.
2. Defined as the amount of hash rate that could theoretically be generated if all turned on miners were currently operating (including miners that are temporarily offline for maintenance or similar reasons). The hash rates are estimates based on the information provided by the manufacturers. All numbers are rounded.
3. Defined as the average hash rate actually generated by all operating miners during the month. All numbers are estimates and are rounded.
4. Defined as the sum of the activated hash rate (see above) and the installed but not yet activated hash rate (e.g. miners are in containers but not activated). The hash rates are estimates based on the information provided by the manufacturers. All numbers are rounded.

The Company’s average fleet efficiency, based on manufacturer data, was 25.2 J/TH (joules per terahash) as of November 1, 2023. Once fully deployed, Marathon’s US fleet efficiency is expected to be around 24 J/TH, according to the manufacturer.

Figure 2: US operational details by location

Hash rates in EH/s								Installed hash rate								Energized Hash Rate								Average operating hash rate								Average percentage of energy
website		Condition				host		Oct. 2023				September 2023				Oct. 2023				September 2023				Oct. 2023				September 2023				Oct. 2023				September 2023
McCamey			TX			US Bitcoin			7.7				7.7				7.7				7.7				6.6				5.8				86	%			75	%
Ellendale			ND			Applied			7.7				7.7				7.7				7.7				7.2				6.6				93	%			86	%
Garden City			TX			Applied			4.1				4.1				0.2				0.0				0.0				0.0				0	%			0	%
Granbury			TX			US Bitcoin			1.9				1.9				1.9				1.9				1.7				1.5				89	%			81	%
Jamestown			ND			Applied			1.4				1.4				1.4				1.4				1.3				1.2				89	%			84	%
Note: The table above does not include smaller locations or the joint venture in the UAE

Marathon and its hosting provider improved uptime in McCamey, TX from 75% in September to 86% in October. These improvements helped increase the average operational hash rate at this facility by 14% to 7.2 EH/s. The company continues to optimize its operations to maximize efficiency and reduce operating costs.

Financial highlights and updates

Figure 3: Financial highlights

		Year-on-year comparison												Comparison of the previous month
Metric		October 31, 2023				October 31, 2022				%D				October 31, 2023				September 30, 2023				%D
Total cash, cash equivalents and restricted cash ($, in millions)			156.1				60.9				156	%			156.1				101.2				54	%
Unlimited Cash			156.1				52.1				200	%			156.1				101.2				54	%
Limited money			0.0				8.8				-100	%			0.0				0.0				THE
Total BTC holdings (in whole numbers)1			13,396				11,285				19	%			13,396				13,726				-2	%
Unlimited BTC holdings			13,396				3,464				287	%			13,396				13,726				-2	%
Restricted BTC holdings			0				7,821				-100	%			0				0				THE
Pledged BTC holdings			571				0				THE				571				0				THE
1. Bitcoin holdings reported exclude 571 BTC pledged as collateral in a hedging transaction.

As of October 31st, Marathon holds a total of 13,396 unrestricted BTC. With both hash rate and Bitcoin production increasing, Marathon decided to sell 961 BTC to cover the direct costs involved. The Company intends to sell a portion of its Bitcoin holdings in future periods to support monthly operations, manage its finances, and for general corporate purposes. The company also continued to hedge some of its BTC holdings. As of October 31, 571 BTC was pledged as collateral and no longer included on Marathon’s balance sheet.

The company ended the month with $156.1 million of fully unrestricted cash and cash equivalents on its balance sheet. The total balance of unrestricted cash and cash equivalents and Bitcoin increased from $471.3 million month-over-month to $620.4 million as of October 31, 2023.

Extraordinary shareholders’ meeting on November 10, 2023

Marathon Digital Holdings will hold a special meeting of shareholders on November 10, 2023 to consider and vote on several corporate proposals. For further information, see Exhibit 14A filed with the Securities and Exchange Commission on October 2, 2023, linked here.

Note to investors
Investing in our securities involves a high level of risk. Before making any investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described under “Risk Factors” in Item 1A of our most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed with the SEC on December 16 March 2023. If any of these risks materialize, our business, financial condition or results of operations would likely be adversely affected. In this event, the value of our securities could decline and you could lose some or all of your investment. The risks and uncertainties we have described are not the only ones we face. Additional risks that are not currently known to us or that we currently consider to be immaterial may also affect our business operations. In addition, our past financial performance may not be a reliable indicator of future performance and historical trends should not be used to predict future results. Future changes to the network-wide mining difficulty rate or Bitcoin hash rate may also significantly impact Marathon’s future Bitcoin production performance. Additionally, all discussions of financial metrics assume mining difficulty rates as of November 2023. See “Forward-Looking Statements” below.

Forward-Looking Statements
Statements made in this press release include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by the use of words B. “may”, “will,” “plan,” “should,” “expect,” “anticipate,” “estimate,” “continue,” or similar terminology. Such forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which the Company cannot accurately predict and some of which the Company may not even anticipate, and involve factors that could cause actual results to differ materially from those projected or anticipated deviating from predicted results is recommended. Readers are cautioned not to place undue reliance on these forward-looking statements and are encouraged to consider the factors set forth above, together with the additional factors under the heading “Risk Factors,” in the Company’s Annual Reports on Form 10-K (as amended). to be reflected or amended by the Company’s Quarterly Reports on Form 10-Q. The Company undertakes no obligation to update or supplement any forward-looking statement that becomes untrue as a result of subsequent events, new information or otherwise.

About Marathon Digital Holdings
Marathon is a digital assets technology company focused on supporting and securing the Bitcoin ecosystem. The company is currently in the process of becoming one of the largest and most sustainable Bitcoin mining companies in North America.

For more information visit www.mara.com or follow us on:

Twitter: @MarathonDH
LinkedIn: www.linkedin.com/company/marathon-digital-holdings
Facebook: www.facebook.com/MarathonDigitalHoldings
Instagram: @marathondigitalholdings

Marathon Digital Holdings Pursue Contact:
Phone: 800-804-1690
Email: [email protected]

Marathon Digital Holdings Media Contact:
Email: [email protected]

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