LAS VEGAS, March 16, 2021 (GLOBE NEWSWIRE) — Marathon Digital Holdings, Inc. (NASDAQ:MARA) (“Marathon” or “Company”), one of the largest enterprise Bitcoin self-mining companies in North America, reported financial results for the fourth quarter and fiscal year ended December 31, 2020.
Fourth Quarter 2020 and Recent Highlights
- Purchased 90,000 of the industry’s most efficient Bitcoin miners during the fourth quarter, increasing the Company’s mining fleet to approximately 103,120 miners capable of producing 10.37 EX/s (exahash per second) by the first quarter of 2022
- Initiated construction of mining facility adjacent to Beowulf’s energy plant in Hardin, MT, supplying Marathon long-term access to electricity at 2.8¢/kWh
- As of March 15, 2021, installed 3,697 S-19 ASIC miners at the mining facility Hardin, MT, increasing Marathon’s current active mining fleet to 5,690 miners with an additional 6,641 already delivered from Bitmain and in the process of being installed
- Formed the Digital Currency Miners of North America (DCMNA), a U.S.-based non-profit aimed at improving the mining environment for North American miners
- As of December 31, 2020, the Company had $216.1 million in cash and cash equivalents and total liabilities of $1.5 million
- As of December 31, 2020, the Company generated and held over $2.3 million in bitcoins as digital currencies
- As of March 15, 2021, the Company had $219.0 million in cash and cash equivalents (*unaudited)
- As of March 15, 2021, the Company generated and held over 254 bitcoins, each of which had a market price of approximately $56,413; as a result, the approximate value of Marathon’s bitcoins held as digital currencies was over $14.3 million (*unaudited)
- Subsequent to year end, purchased 4,812.66 bitcoins for $150 million (average purchase price of $31,168 per BTC), establishing the Company as one of the only pure-play Bitcoin investment options; as of March 15, 2021, the Company’s $150 million investment in Bitcoin has a fair market value of approximately $271 million, a gain of approximately 81%
- Rebranded to Marathon Digital Holdings, reflecting the Company’s position as a leading digital asset technology company
- Strengthened management team with the appointments of Simeon Salzman to chief financial officer and Kevin A. DeNuccio to board of directors
“2020 was a momentous year for our business as it marked the beginning of our transition into one of the largest and most efficient Bitcoin miners in North America,” said Merrick Okamoto, Marathon’s chairman and CEO. “In the second half of last year alone, we established our 105 MW mining facility in Hardin, MT, where we have consistent access to electricity at rates far below market average, we presciently purchased more than 100,000 of the industry’s top performing Bitcoin miners before supply began to become constrained, and we enhanced our balance sheet.
“With a solid foundation to grow the business established, we are now focused on continuing to build out our mining facility and bring our miners from Bitmain online. Once all miners are deployed, which we currently expect to occur in the first quarter of 2022, Marathon’s mining fleet will consist of approximately 103,120 miners that generate 10.37 EH/s. As evidenced by the investments we have made into our mining operations so far, the establishment of the DCMNA, our $150 million investment in Bitcoin, and our rebranding, Marathon is fully committed to becoming one the largest and most innovative enterprise Bitcoin self-mining companies, and we look forward to executing against our strategy to do so throughout 2021 and beyond.”
Marathon’s chief financial officer, Sim Salzman, commented, “Financially, 2020 was highlighted by a 268% increase in revenue year-over-year and a substantial improvement to our balance sheet. We ended the year with $216.1 million cash and cash equivalents, which compares to less than $1.0 million cash at the…