Marathon Digital Sells Over 60% of Mined Bitcoin in May, Sets Eyes on Global Expansion
Summary:
Marathon Digital disclosed in its monthly report that it sold over 60% of the Bitcoin it mined following the late April halving event. The mining company sold 390 Bitcoins out of the 616 it produced in the month of May, while retaining $290.4 million in liquid assets. Other mining companies reported lower sales, with the likes of Riot Platforms making no Bitcoin sales in the same period. The industry is observing operational changes post the Bitcoin halving process, which reduces mining rewards by half every 210,000 blocks. Meanwhile, Marathon is looking toward international markets and energy infrastructure optimization as part of its future strategies.
Marathon Digital, a prominent mining corporation, offloaded over 60% of the Bitcoin it unearthed following the late April halving event. The company's monthly report divulged the sale of 390 Bitcoin in May, which corresponds to over 63% of the 616 BTC they turned up during that month. As of May's close, Marathon retained $290.4 million in liquid assets. This heavy Bitcoin offload in May starkly contrasts the activities of other mining executives. Riot Platforms, for one, reported zero Bitcoin sales in May, even though they minted 215 BTC. Concurrently, CleanSpark crafted 417 Bitcoin but only sold a small 2.43 BTC fraction.
Post-halving adjustments are in full swing in the mining sector. This epochal event, occurring roughly every four years, diminishes the reward for mining Bitcoin by half every 210,000 blocks. Last April 20, the rewards plunged from 6.25 BTC to 3.125 BTC per block. “To cushion the effects of the April Halving, we upped our number of won blocks, churning out 616 Bitcoin. This amounted to a mere 27% reduction,” expressed Fred Thiel, Marathon’s CEO and chairperson. In May 2024, Marathon netted 170 blocks, marking a 32% surge from April.
In light of decreasing rewards, Bitcoin miners are keen on expanding their fleet and enhancing efficiency. CleanSpark, for instance, is highly involved in mergers and acquisitions, with plans to close recently-purchased sites in Wyoming soon, while prospecting for more. Marathon, though, is eyeing international growth, evidenced by its recent collaboration with Kenya’s Ministry of Energy and Petroleum to enhance renewable energy projects countrywide. There's also a tentative pilot project in Paraguay tailored to augment its energy infrastructure. “By 2028, we aim to draw half of our revenues from international operations,” Thiel mentioned.
Bitcoin miners contribute to energy infrastructure optimization by serving as flexible loads that balance the power grid. Their capacity to swiftly alter energy usage in line with grid demands moderates wastage by absorbing excess renewable energy when supplies abound and minimizing consumption during peak load periods.
Published At
6/5/2024 6:52:38 PM
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