The sharp drop in the prices of bitcoin and other cryptos at the start of the year had a strong impact on the financial balance sheets of companies involved in the industry’s value chain, in particular mining operators. After a lackluster result in the second quarter, some like Canada’s Bitfarms had to sell part of their portfolios to avoid hitting rock bottom. The Texas-based company Marathon Digital also had a difficult year.
No improvement on the financial side, but a lot of optimism
Marathon Digital recorded a loss of $127.6 million for the second quarter of 2022. This, compared to the same period last year. A poor performance that originated in the fall in the price of bitcoin (BTC) that occurred during this period.
Despite this, the company reported an 8% increase in its BTC production between April, May and June 2022, compared to the same period of 2021. This corresponds to 707 new tokens issued. However, these 707 bitcoins produced are a 44% drop from the 1,259 bitcoins produced by the company in the previous quarter.
This drop, assures Fred Thiel, boss of Marathon Digital, is the result of several energy problems at mining farms in Texas and Montana. Regardless, Marathon Digital clarified that it had 10,055 BTC in its wallet as of June 30, 2022.
As a reminder, at the height of the BTC price crisis, the company refused to sell part of its portfolio to stay afloat.
In addition, the manager says he is optimistic about better future results.
“Given the substantive work we have done during the quarter and the progress made since then, we are optimistic that Marathon’s operational and financial position will improve”he said.
Among these efforts is the conclusion of a plan to increase the electrical capacity of the miner by 254 MW which will be necessary to reach the objective of a BTC mining capacity of 23.3 PE/s of here next year.
Marathon Digital is one of the mining companies that suffered the full brunt of the recent setback in the crypto market. The company lost more than $127 million in the second quarter, but remains hopeful that future fiscal years will be more interesting. But not all was bad during this period. Marathon notably succeeded in extracting 707 new tokens.
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