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Marathon Digital Posts Negative Q2 Results, but Increases Bitcoin Production 8% YoY

Marathon Digital Posts Negative Q2 Results, but Increases Bitcoin Production 8% YoYMarathon Digital, one of the biggest mining companies in the Bitcoin ecosystem, has posted its financial results corresponding to the second quarter of the year. The company revealed that even having increased its production by 8% when compared to Q2 2021, it recorded an impairment of $127.6 million on bitcoin holdings due to the fall […]

Marathon Digital Posts Negative Q2 Results, but Increases Bitcoin Production 8% YoY

Marathon Digital, one of the biggest mining companies in the Bitcoin ecosystem, has posted its financial results corresponding to the second quarter of the year. The company revealed that even having increased its production by 8% when compared to Q2 2021, it recorded an impairment of $127.6 million on bitcoin holdings due to the fall of bitcoin prices in this period.

Marathon Digital Registers Impairment of $127.6 Million

Marathon Digital, one of the biggest public Bitcoin mining companies, has released its financial results from the Q2 2022 period. In the recent earnings call, the company posted negative results, reporting an impairment of $127.6 million due to the fall in bitcoin prices. However, the company produced 707 bitcoin during the period, a number that is 8% higher than what the company produced during last year’s Q2.

However, these 707 bitcoin produced constitute a fall of 44% when compared to the 1,259 bitcoin produced by the company in the prior quarter. Marathon’s CEO Fred Thiel attributed this fall to several energy problems that delayed the activation of miners in its Texas operation, and also to weather issues that affected the power generation process in the Montana facility.

Even when the company reported a net loss of $191.6 million, Thiel was positive about the recovery of the company. In a statement, he declared:

Given the groundwork we laid during the quarter and the progress we have made since, we are optimistic that Marathon’s operational and financial positioning is improving.

The company held 10,055 bitcoin directly as of June 30.

Projections for the Future

The company, which had to deal with a slew of problems last quarter, is working to improve its situation in the near future. Thiel remarked that the energization problems in the Texas facility have already been dealt with, and that 40,000 miners out of the 68,000 that are in the facility are already activated and being energized, ready to produce bitcoin for Q3, improving the capacity of the company.

Thiel also referred to the recent deal that Marathon inked to raise its power capacity to 254 MW, which will be needed to reach the goal of having 23.3 EH/s (exahash per second) of bitcoin mining capacity by 2023. The company is also reviewing and substituting part of its mining fleet to achieve better efficiency.

Marathon’s CEO finished on a positive note, stating:

Overall, this progress provides us with added confidence that we remain on track to grow our position as a leader in supporting and securing the Bitcoin ecosystem.

What do you think about Marathon Digital’s Q2 2022 financial results? Tell us in the comments section below.

Source: Mining Archives – Bitcoin News

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Crypto

New York Governor Signs Law Partially Banning Bitcoin Mining on Fossil Fuels

New York Governor Signs Law Partially Banning Bitcoin Mining on Fossil FuelsA moratorium on some crypto mining operations relying on carbon-based energy has been signed into law in New York. Businesses engaged in proof-of-work mining in the state will not be able to expand or renew their permits for the next two years as a result of the ban, which is likely to have consequences for […]

New York Governor Signs Law Partially Banning Bitcoin Mining on Fossil Fuels

A moratorium on some crypto mining operations relying on carbon-based energy has been signed into law in New York. Businesses engaged in proof-of-work mining in the state will not be able to expand or renew their permits for the next two years as a result of the ban, which is likely to have consequences for the industry across the United States.

‘First of Its Kind’ PoW Mining Moratorium Takes Effect in New York

New York Governor Kathy Hochul signed a law on Tuesday partially banning cryptocurrency mining using power generated from fossil fuels. The legislation will prevent companies involved in proof-of-work (PoW) mining that don’t use solely renewable energy such as hydropower from expanding, and renewing or obtaining new permits in the next two years.

The bill introducing the temporary restrictions, which passed the state assembly and senate this past spring, targets specifically PoW authentication, the method employed to validate blockchain transactions for cryptocurrencies like bitcoin, as it requires significant amounts of electricity to run the powerful computing hardware.

In a legal filing quoted by the CNBC, Hochul noted that the decision “is the first of its kind in the country.” According to a report by Bloomberg, the governor has been postponing the signing of the mining law amid intensive lobbying from the sector. She also emphasized her intention to “ensure that New York continues to be the center of financial innovation” while prioritizing environmental protection.

Representatives of the industry fear that the ban could have a domino effect across the U.S., a major player in the crypto mining market. The nation’s share of the average monthly global hashrate neared 38% in January, according to the Cambridge Bitcoin Electricity Consumption Index. The Chamber of Digital Commerce issued a warning statement:

The approval will set a dangerous precedent in determining who may or may not use power in New York State.

The law would weaken New York’s economy and stifle its future as a leader in technology and global financial services, said the Chamber’s founder and chief executive Perianne Boring. In earlier comments, she also pointed out that the decision will eliminate jobs and “disenfranchise financial access to the many underbanked populations.”

According to other experts, the moratorium could force crypto mining companies to relocate to more favorable jurisdictions such as Georgia, North Carolina, North Dakota, and Wyoming, with jobs and tax money moving out of New York. Among them is Texas, which in addition to friendly regulations also offers access to abundant renewable power and excess energy from sources like stranded gas.

Aggressive carbon-reduction targets were also part of the reasoning behind last year’s government crackdown on crypto mining in China, the former leader in the industry. In Europe, proponents of the idea to ban PoW mining attempted to add provisions prohibiting services for cryptocurrencies that rely on the energy-intensive mining method to the EU’s Markets in Crypto Assets (MiCA) legislation. In October, amid limited energy supplies from Russia, Brussels renewed efforts to reduce power consumption in crypto extraction.

Do you expect other states to impose similar restrictions following the enforcement of the PoW mining ban in New York? Let us know in the comments section below.

Source: Mining Archives – Bitcoin News

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