Marathon’s CEO, Thiel, addressed the company’s strategy behind its first-quarter accomplishments in an exclusive interview at the Bitcoin 2023 conference in Miami. Marathon was able to lower their net loss from $12.9 million in Q1 2022 to $7.2 million in Q1 2023 despite lower Bitcoin pricing. In order to achieve this improvement, production must be increased.
In the first three months of the year, Marathon mined 2,195 BTC, setting a new quarterly record valued over $60 million. Thiel emphasized the company’s hash rate, which increased to 14.0 exhashes per second (EH/s), which is twice as fast as it was the year before. Marathon plans to reach a hash rate of 23.0 EH/s in the upcoming months with a 74% increase in production.
Challenges: During the 2022 crypto winter, Marathon, like many other Bitcoin mining operations, came under strain. In response to Core Scientific’s Chapter 11 bankruptcy filing, Greenridge was given a $74 million lifeline for debt restructuring. These difficulties emphasize how unstable the cryptocurrency industry is and how mining companies must adjust to changes in the market.
The technique employed by Marathon also included measures to safeguard assets from market downturns. Thiel claims that Marathon invested funds raised in previous years by tying its debt to the value of Bitcoin and purchasing rigs at the height of the market with price protection.
“As the pricing came down in the market, our pricing was adjusted all the way down. What that meant is we had first looked essentially at the latest technology, which means that our fleet is going to be the most energy-efficient fleet in the industry. The average fleet across the industry is about 43, 44 joules per terahash. Our fleet is at 24 joules per terahash, so almost half the energy.”