Marathon Digital achieved a record-breaking production of 1,853 Bitcoin (BTC) in December 2023, marking the highest monthly total ever recorded by a public BTC mining company.
The growth represents a significant 290% year-over-year increase and a 56% rise from the previous month. Marathon chairman and CEO Fred Thiel attributed the achievement to the company’s strategic expansion and operational efficiency. He stated:
“Our record-breaking production in December is a testament to our growth strategy and our commitment to leading the Bitcoin mining industry.”
Thiel also highlighted the company’s future growth targets, aiming for a 30% increase in energized hash rate in 2024.
Hash rate on the rise
A key factor contributing to the record production was Marathon’s increased average operational hash rate, which grew by 18% month-over-month to 22.4 exahashes per second (EH/s).
The growth is mainly driven by Marathon’s strategic expansions, including the energization of approximately 8,900 of its Bitcoin miners at Applied Digital’s facility in Texas.
This helped increase the company’s operating fleet by 7% to approximately 199,200 Bitcoin miners. These miners are theoretically capable of producing approximately 24.7 EH/s, as per the manufacturer’s specifications.
Looking forward, Marathon intends to continue to focus on growth and efficiency. The company’s recent acquisition of sites in Texas and New England — expected to close in January 2024 — is set to improve its cost structure and increase its near-term growth potential.
Additionally, international expansions, like the progress in Abu Dhabi and a new joint venture in Paraguay, have also been pivotal to Marathon’s growth strategy. The company is also actively investing in using alternative energy sources for its operations.
The company aims to achieve a 30% growth in energized hash rate in 2024 and expects to reach 50 exahashes in the next 18 to 24 months.
BTC fees
Marathon’s success extends beyond its mining capabilities. The company’s innovative approach to capturing transaction fees has provided it with a competitive edge.
Marathon’s mining pool, MaraPool, collected over 380 BTC in transaction fees during the month, accounting for 22% of its total Bitcoin production — a significant increase from 12% of production in the previous month.
Owning and operating its own pool has been a key competitive advantage for Marathon, enabling it to capture sizable transaction fees currently available to miners.
Financially, Marathon is in a robust position, with its total cash and Bitcoin holdings valued at approximately $1.0 billion as of the end of 2023. The company’s strategic approach to managing its treasury, including selling a portion of its Bitcoin holdings to cover operating expenses, has contributed to its strong financial standing.
In December 2023, Marathon sold 704 BTC, which constituted about 38% of its monthly production, to cover operating expenses. This strategy is part of Marathon’s broader plan to support monthly operations, manage its treasury, and for general corporate purposes