Find out how Marathon Digital, despite hashrate growth, experienced a 21% drop in bitcoin production in June. The decrease is attributed to weather conditions and falling transaction fees. However, new opportunities lie ahead for the company specializing in Bitcoin mining.
Once upon a time, in the world of Bitcoin mining, a company called Marathon Digital experienced ups and downs in its quest to produce Bitcoins. While the previous month, the company was celebrating having broken its record for mined digital coins, it announced a 21% drop in production in June 2023 compared to the previous month.
During June, Marathon managed to mine 979 bitcoins, bringing its total production for the year to over 5,000 BTC. However, in May, the Nasdaq-listed miner had mined 1,245 units, marking a significant decrease in production.
But Marathon hasn’t given up!
This drop in production is attributed to two main factors : weather conditions in Texas and a sharp reduction in transaction costs. According to Marathon’s president, weather-related restrictions affected mining operations. In addition, transaction costs dropped to around 5.1% of total bitcoins mined in June, compared with 11.8% in May.
Fred Thiel, the head of Marathon, explained that the development of ordinals, the NFTs on Bitcoin, had significantly increased transaction fees in May. However, with network congestion less pronounced in June, he sees these recent trends as a positive sign for the future of the mining economy.
Despite this drop in production, Marathon has not given up. In June, the Texas-based company commissioned new machines, increasing its operational hash rate by 16%, from 15.2 EH/s to 17.7 EH/s. It aims to reach 23 EH/s by the end of the year, demonstrating its determination to overcome obstacles.
In addition, Marathon recently announced a new joint venture in Abu Dhabi, in partnership with blockchain startup Zero Two. This collaboration aims to establish crypto mining operations in the Middle East. The first containers of their Mina Zayed facility have already been powered up, opening up new opportunities for Marathon.
So continues the saga of Marathon Digital, a company that faces the challenges of Bitcoin mining while exploring new avenues to ensure its growth and success in the ever-changing world of cryptocurrency.
