A Bitcoin mining firm in the United States Marathon has released its financial results for the second quarter of 2023. The report revealed an impressive 228% rise in revenue compared to the same period in 2022. 

The company disclosed a profit of $23.4 million derived from selling 63% of the Bitcoin mined during the quarter, which was utilized to cover operational expenses. Additionally, they reported impairment charges amounting to $8.4 million related to their digital assets’ valuation.

Report Shows Marathon Still Holds 13,286 BTC In Treasury

As of August 31, 2023, Marathon held 13,286 Bitcoin (BTC), with 13,111 BTC available without restrictions. During August, the company sold 750 BTC with plans to continue selling portions of its Bitcoin holdings in the future. 

These sales will serve various purposes, including supporting monthly operational needs, managing their treasury, and covering general corporate expenses. Additionally, Marathon occasionally uses some of its Bitcoin for treasury-related activities. 

At the end of August 2023, the company had $111.2 million in cash and cash equivalents on its balance sheet, with $105.5 million being unrestricted. 

The combined balance of unrestricted cash and cash equivalents, as well as Bitcoin, has increased significantly. It has grown from $201.5 million to $445.5 million compared to last year.

Bitcoin Mining Rate for Marathon Declines 9% In August

In August 2023, Marathon Digital Holdings experienced a 9% reduction in its Bitcoin (BTC) mining output. The primary reason for this decline was a slow in its Texas operation caused by exceptionally high temperatures. 

Despite these challenges, the company acquired additional mining hardware, contributing to a substantial production of 1,072 BTC for the month, as outlined in its most recent mining operations report.

In a press release on September 5, Marathon provided unaudited information regarding August’s Bitcoin (BTC) production and miner installation progress. 

According to the announcement, the company achieved a 2% month-over-month increase in its operational hash rate in the United States, reaching 19.1 exahashes in August. Additionally, its installed hash rate saw a 1% month-over-month rise, reaching 23.1 exahashes. 

This growth was attributed to the company’s decision to upgrade its mining equipment from Bitmain Antminer S19j Pro models to more efficient S19 XP models. Marathon’s initial goal is reaching a domestic hash rate of 23 exahashes. 

Its new objective is to attain a hash rate of 30 exahashes. The company plans to achieve this by securing two exahashes through international facilities and five exahashes through contracts with external entities.

Marathon Sets To Expand Its Mining Capacity

Marathon is finalizing documentation for its upcoming Garden City, Texas, mining facility. Furthermore, their joint venture in Abu Dhabi mined 50 Bitcoin in August.

Regarding the decline in Bitcoin production, Marathon CEO Fred Thiel attributes it primarily to adverse weather conditions, as mentioned above. Thiel stated that the reduction in Bitcoin production from July was mainly a result of heightened curtailment actions in Texas due to historically high temperatures. 

Thiel said these temporary shutdowns outweighed the firm’s improvements in boosting the operational hash rate and general operations. As Bitcoinist reported, Bitcoin miners contributed to the Texas electrical grid, offsetting negative impacts from high temperatures during the summer.