• Thu. May 23rd, 2024

Marathon Digital Achieves 21% Year-on-Year Increase in BTC Production

Steve Kornacki

BySteve Kornacki

May 3, 2024
Marathon Digital Achieves 21% Year-on-Year Increase in Bitcoin Production

Marathon Digital’s YoY BTC Production Surges by 21%

Marathon Digital, a leading Bitcoin mining firm, has reported a significant surge in its BTC production for April. Despite the challenges posed by the Bitcoin halving event, the mining firm still boosted its production by 21% compared to the previous year. 

This accomplishment is primarily attributed to a 15% increase in operational hash rate, now at 21.1 exahash. However, the launch of the Runes Protocol and the Bitcoin halving event, which reduced miners’ rewards to 3.125 BTC per block, had little impact on Marathon Digital’s operations. 

The company’s improved hash rate enabled it to capitalize on increased transaction fees inspired by the Runes Protocol. In April, transaction fees contributed approximately 16% to Marathon Digital’s Bitcoin earnings.

Fred Thiel, the chairman and CEO of Marathon, noted that they reached a record-high operating hash rate of 25.9 exahash in April and mentioned that transaction fees hit unprecedented levels during the Halving, which the firm successfully leveraged through its Slipstream service and proprietary mining pool. 

In addition to its mining activities, Marathon Digital disclosed that it sold 600 BTC in April to support monthly operations, manage its treasury, and for general corporate purposes. According to data from Bitcoin Treasuries, Marathon is among the biggest publicly listed Bitcoin mining companies globally. 

Marathon Digital’s Consultation with the Kenyan Government 

Meanwhile, Marathon Digital revealed its involvement in consultations with the Kenyan government regarding cryptocurrency regulations and mining. Kenya’s president, Williams Ruto, President Ruto mentioned that Marathon Digital has been invited to consult with Kenya’s National Treasury regarding the country’s cryptocurrency regulations. 

The firm will discuss its energy requirements for cryptocurrency mining with the Ministry of Energy in Kenya. Moreover, Marathon Digital highlighted the potential for its digital asset data centers to spur energy development in the region and foster US-East Africa trade relations.

The collaboration between Marathon Digital and the Kenyan government underscores the increasing interest in cryptocurrency regulation and mining worldwide. 

Riot Platforms’ Slight Revenue Growth 

Meanwhile, Riot Platforms Inc., a prominent bitcoin mining firm, has announced a slight revenue increase in Q1 2024 despite a 36% drop in mined BTCs. The company’s revenues exceeded $79 million, increasing from over $73 million in the corresponding quarter of 2023.

The decrease in mined BTCs, down to 1,364 from 2,115 in the previous year, was attributed to a significant increase in Bitcoin network difficulty. Nevertheless, Riot Platforms still achieved this revenue growth due to a 131% increase in the price of BTC, which more than compensated for the decline in production.

During the quarter under review, Riot Platforms incurred an average cost of $23,034 to mine one BTC, compared to $9,438 in the first quarter of 2023. Despite the increased costs, the company also earned $5.1 million in power curtailment credits, up from $3.1 million in the same period last year.

Riot Platforms’ mining capacity segment accounted for 94% of total revenues, reaching $74.6 million, while the engineering segment contributed $4.7 million. Last year, the engineering segment recorded $16.7 million, with the mining segment generating $48 million.

CEO Jason Les noted that Riot’s net income of $211.8 million and earnings per share of $0.82 are new highs for its quarterly results. Additionally, Riot Platforms reported $245.7 million in adjusted EBITDA for the quarter — another record high for the company.

Plans for Upcoming Expansion

Les also gives an update on Riot Platforms’ growth strategy, mentioning that the mining rigs set up at the Corsicana Facility are now up and running. Nonetheless, the company aims to boost its self-mining hash rate efficiency to 31 EH/s by year-end.

Riot Platforms Inc. showed strength amid difficulties, increasing revenue slightly despite mining fewer BTCs. With expansion strategies in place and impressive financial results, the company is reinforcing its status as a major player in the BTC mining sector.

Steve Kornacki

Steve Kornacki

Steve Kornacki, a respected author at Big Trends Signals, uses his deep online trading acumen to create comprehensive guides and balanced reviews, empowering traders in their digital pursuits.

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