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Amidst its woes Marathon Digital secured a loan from the now defunct Silvergate Bank, a deficit it said it has been able to completely offset.
American Bitcoin (BTC) mining firm Marathon Digital Holdings Inc (NASDAQ: MARA) has posted a better-than-expected report for the first quarter in which the firm said it mined a total of 2,195 Bitcoin. According to the firm’s update, it attained its highest production month-on-month in March when it mined a total of 825 BTC.
Per the report, the March production came in at a 21% upshoot from that recorded in Q4 2022. The company also noted that its hashrate increased by 64% in Q1 2023 to 11.5 EH/s as of March 31, 2023.
“During the quarter, we increased our operational hash rate 64% from 7.0 exahashes to 11.5 exahashes,” Marathon Digital’s CEO, Fred Thiel said in a statement. “We also observed improvements in the consistency of our hash rate, which indicates that some of the technological upgrades we have been implementing are starting to take effect. By improving our hash rate, we increased our bitcoin production 41% from the prior quarter to a record 2,195 bitcoin in Q1. In March, we produced a record 825 bitcoin, which is a 21% increase from the prior month.”
Marathon Digital was among the miners who recorded significant strain in their operations in 2022. The war in Ukraine fueled an energy crisis that made the operational costs for miners like Marathon a very unprofitable one. This unfavorable condition was further mixed and complicated by the crypto winter which saw the price of Bitcoin slip to a low of $15,599.05, according to data from CoinMarketCap.
With the conditions the business was faced with, mining BTC became costly, and selling off proved highly unprofitable, a situation that strained the company financially.
Marathon Digital and the Financial Revival
The conditions most miners found themselves in the past year saw many, including Marathon Digital, plunged into distress and at the brink of bankruptcy. Amidst its woes Marathon Digital secured a loan from the now defunct Silvergate Bank, a deficit it said it has been able to completely offset.
In addition, the cryptocurrency miner also sold off the Bitcoin it mined in February as reported by Coinspeaker at the time. Based on its report, the company now has a positive cash flow with a total of $124.9 million in unrestricted cash and cash equivalents. In addition, the company said it ended the quarter with 11,466 BTC, with a cumulative value of over $450 million.
Marathon Digital said it was able to deliver on its two major initiatives as aptly described by Fred Thiel.
“During the first quarter of 2023, we made notable progress executing on our two primary initiatives for the year, which are to energize our previously purchased mining rigs to reach our target of 23 exahashes by the middle of this year and to optimize our performance so that we are both more effective and more efficient,” he said in his statement.