Marathon Digital Holdings, one of the largest Bitcoin mining companies, reported a 5% increase in Bitcoin production for September 2024. 

The company mined 705 Bitcoin (BTC), raising its total holdings to 26,842 BTC, according to company postings. Marathon also reported winning 207 blocks in September, a 6% increase from the previous month.

The company did not sell any Bitcoin during the month, continuing its strategy of holding onto mined Bitcoin.

Bitcoin mining is the process where powerful computers, known as miners, solve complex mathematical problems to verify transactions on the Bitcoin network. Miners are rewarded in Bitcoin for their efforts. 

Marathon Digital supports these mining operations using an energized hash rate of 36.9 exahashes per second — a measure of computing power — and aims to reach 50 EH/s by the end of 2024.

In mid-August, Marathon announced it had raised $292.5 million through an oversubscribed private offering of 2.125% senior notes maturing in 2031. It used $249 million to purchase 4,144 BTC and allocated the remaining $43 million for additional Bitcoin purchases, debt repayments, and strategic expansions.

September operations

Marathon’s operations performed well in September, with improved uptime and efficiency across its global sites. 

CEO Fred Thiel highlighted the company’s progress, noting its growing hash rate and successful conversion of its Granbury data center to a more efficient cooling system. 

“We remain on track to reach our target of 50 EH/s by the end of 2024. Our team continues to quickly energize our owned sites and operate them more efficiently than originally planned. The conversion of our Granbury data center from air cooled to MARA’s immersion containers is progressing on time and we expect this work to be completed before year end.” 

Fred Thiel

Marathon Digital has bought $249 million worth of Bitcoin using funds raised from a $300 million offering of convertible senior notes.

In an Aug. 14 press release, Marathon, which is the largest public Bitcoin (BTC) miner by realized hash rate, said it had raised $300 million, which was reduced to $292.5 million after deducting discounts and commissions. It then used $249 million from that amount to buy 4,144 BTC at an average price of $59,500.

The funds were raised through debt security in the form of 2.125% senior notes maturing in 2031, which were sold in an oversubscribed private offering to qualified institutional buyers.

Marathon said it would use the remaining funds, about $43 million, to buy even more Bitcoin and for general corporate purposes, including debt repayments and strategic expansions.

In July, the Bitcoin miner bought $100 million worth of BTC and announced that it would retain all the Bitcoin it mined going forward. Adding the 4,144 BTC it just bought, Marathon now holds more than 25,000 coins with a market value of $1.46 billion.

Despite news of the purchase, Marathon Digital’s stock still fell 2.26% to trade at $15.14 by the close of business on Aug. 14. Additionally, its revenues for the second quarter of 2024 fell short of expectations, reaching $145 million compared to the $165.2 million it made between January and March 2024. This may have been a result of the increased cost of Bitcoin mining, which doubled even as Marathon grew its hash rate.

However, year-on-year growth was up 78%, with the miner only making $81.8 million in Q2 2023. Furthermore, the company added about 25,000 new Bitcoin mining rigs to its operations, bringing the total to about 250,000 machines. This pushed up its hash rate to 24.7 EH/s, which bettered some of its biggest rivals, including Riot and Core Scientific.

Marathon Digital is planning a $250 million private offering of convertible senior notes, intensifying its commitment to expanding Bitcoin holdings.

Bitcoin mining firm Marathon Digital Holdings is seeking to raise $250 million through a private offering of convertible senior notes due in 2031 as the crypto mining firm looks to double down on its Bitcoin(BTC) holding strategy.

In an Aug. 12 press release, the Florida-headquartered firm said the funds would be used to acquire additional Bitcoin as part of the company’s ongoing strategy to increase its crypto holdings.

The convertible notes, which will be offered to qualified institutional buyers under Rule 144A of the Securities Act of 1933, are unsecured, senior obligations of Marathon Digital and will bear interest payable semi-annually, the press release reads. The Bitcoin mining firm also plans to grant initial purchasers an option to acquire an additional $37.5 million of the notes.

Despite the news, Marathon Digital’s stock fell 3.11% in pre-market trading.

Marathon Digital buys more Bitcoin

Marathon Digital’s latest move follows the firm’s recent acquisition of $100 million worth of Bitcoin in late July, pushing its holdings to over 20,000 BTC.

The initiative aligns with Marathon’s goal to double its Bitcoin mining capacity in 2024, targeting a hash rate of 50 EH/s. As crypto.news reported earlier, Marathon’s operations recently achieved a hash rate of 24.7 EH/s, surpassing its rivals. If Marathon meets its 50 EH/s target, it will have more than doubled its hash rate since the start of 2024.

Previously, Marathon Digital also indicated that as part of its new approach, it will retain all Bitcoin mined in its operations and will “periodically make strategic open market purchases.” Marathon Digital chief executive Fred Thiel said at the time that Bitcoin’s purchases reflect the firm’s “confidence in the long-term value” of the cryptocurrency as a “reserve asset.”

Bitcoin mining company Marathon Digital has purchased $100 million worth of BTC as part of its “HODL strategy.”

Cryptocurrency mining giant Marathon Digital said in an X post on Thursday that it bought $100 million worth of Bitcoin (BTC) and is now holding over 20,000 BTC on its balance sheet as part of the HODL strategy.

The American crypto mining company also said that as part of its new approach, Marathon Digital will retain all Bitcoin mined in its operations and will “periodically make strategic open market purchases.” Marathon Digital chief executive Fred Thiel, addressing the purchase, said that the strategy “reflects our confidence in the long-term value” of Bitcoin, encouraging governments and corporations to “all hold Bitcoin as a reserve asset.”

“Adopting a full HODL strategy reflects our confidence in the long-term value of Bitcoin.”

Fred Thiel, Marathon Digital CEO

Marathon Digital’s chief financial officer, Salman Khan, said the company boosted its crypto balance sheet as Bitcoin’s recent price decline afforded the miner “an opportunity to add to our holdings.” Despite the news, Marathon Digital shares (MARA) traded at -2.4% in pre-market, as per data from Nasdaq.

The purchase aligns with Marathon’s goal to double its mining capacity in 2024, aiming to achieve a hash rate of 50 EH/s. As crypto.news reported earlier, Marathon’s operations recently achieved a hash rate of 24.7 EH/s, surpassing rivals Core Scientific and Riot Platforms. If Marathon meets its 50 EH/s target, it will have more than doubled its hash rate since the start of 2024.