With a new quarterly production record, Marathon Digital is now on track to meet its mid-year target of 23 exahashes.
Marathon reported in an April 3 update that the 2,195 mined BTC is a 74% increase from the first quarter of last year and a 41% increase from Q4 2022.
It comes on the back of the miner increasing its operational hash rate by 195% from Q1 2022.
Marathon also recorded a monthly record of 825 BTC mined in March — currently valued at around $23.3 million — and marked a 21% production increase from February.
In a statement, CEO Fred Thiel said Marathon made “notable progress” on executing its two primary initiatives for 2023 — to energize its previously purchased mining rigs to reach 23 exahashes by the end of the second quarter and to optimize performance.
The firm is now exactly on target, having increased its operational hash rate from 7.0 exahashes on Jan. 1 to 11.5 exahashes as of March 31.
Marathon’s management attributed the increase in efficiency to it bringing online 25,900 Bitcoin miners based in various facilities in North Dakota, bringing its fleet to 105,200 mining rigs as of April 1st.
Marathon explained its operational improvements cleaned up part of its balance sheet by wiping out $50 billion in debt in addition to repaying its loan back to the now-failed Silvergate Bank:
“We reduced our debt by $50 million and increased our unrestricted Bitcoin holdings by 3,132 Bitcoin after we prepaid our term loan and terminated our credit facilities with Silvergate Bank.”
The firm finished the quarter with approximately $124.9 million in unrestricted cash and cash equivalents, and 11,466 BTC, which equates to over $450 million.
Marathon noted the figures have not been audited.
Marathon expects operational efficiencies to continue having purchased a new batch of Antminer S19 XPs Bitcoin mining rigs that are said to be nearly 30% more efficient than the Antminer S19 Pro.
Once those miners are installed approximately 66% of Marathon’s hash rate will come from the S19 XPs, it said.
The design of S19 XPs has, however, been criticized by fellow Bitcoin mining firm Compass Mining.
In a March report the firm identified “three flaws” of the new S19s which may result in the mining rig overheating, or in some cases, shutting down completely.