Mining Capacity of Marathon Digital Reduced by 21% in June due to Extreme Weather
Marathon Digital is one of the biggest Bitcoin mining farms in the world. The firm has recently reported some statistics concerning its production for June. As per the data, miners have maintained that Bitcoin production for June was recorded at 979 units.
However, for May, the total mined Bitcoin was around 1245 units signifying a 21% drop. The company reportedly holds a total of 12,538 Bitcoins by the end of the month.
Bitcoin holdings of Marathon Digital have made it one of the biggest commercial holders of the flagship cryptocurrency. On the other hand, the total amount of Bitcoin production for the whole year is also ramped.
The mining farm reported that their Bitcoin holdings increased by 600% in terms of year-over-year metrics. The report has also shared the environmental factors that led to the overall diminishing quantity of total mined Bitcoins.
Emergence of the Ordinals Protocol
The miners informed the media that the total Bitcoin mining output for June was reduced on account of the weather conditions in Texas. On the other hand, the firm also talked about the emergence of the Ordinals protocol on the Bitcoin blockchain.
The new protocol granted the ability to developers to deploy new tokens on the blockchain however as a result the network experienced transaction fee hikes. As per the firm, this gas inflation has also reduced the overall Bitcoin production.
At the same time, the meteorological data has revealed that the temperatures in Texas were recorded at 35 degrees Celsius. These weather changes in the last fortnight of June compelled miners to shut down their operations to preserve electricity.
Fred Thiel the CEO of Marathon Digital has claimed that he is determined to increase the hashrate by 16% compared to last month. It means that the mining rig will shift from 17.7 EH/s to 21.8 EH/s. He also talked about new mining farms set to go live in various cities namely ND, Ellendale, and Garden City.
Marathon Digital has installed around 18,500 Bitcoin mining units at Ellendale increasing its total to 149,900 machines. The firm has plans to start the Ellendale mining rig this month. The firm has preserved its overall Bitcoin holdings for the long term.
However, during June it sold around 700 Bitcoins and has expressed interest in selling more during the current month to settle bills such as treasury management, corporate purposes, and opex.
Meanwhile, the firm reportedly had a rough patch during 2022 on account of the crypto bear market. There were also issues such as stormy weather conditions that disrupted data center activities in Compute North.
However, the company was able to mine 2,195 Bitcoin during Q1 2023 compared to 1,259 Bitcoins mined last year. At the same time, the firm was able to settle its outstanding debt amounting to $50 million with now-defunct Silvergate Bank.
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