Marathon Digital Holdings Announces Bitcoin Production and

LAS VEGAS, May 4, 2022 (GLOBE NEWSWIRE) — Marathon Digital Holdings, Inc. (NASDAQ:MARA) (“Marathon” or “Company”)One of North America’s largest Bitcoin self-mining companies, today published unaudited bitcoin (“BTC”) miners production and installation updates for April 2022.

Historical and potential hash rate growth based on current shipping schedules from previously purchased miners (subject to change)

Corporate Highlights May 1, 2022

  • Increased total bitcoin holdings to 9,673 BTC with a fair market value of $365.5 million
  • 4,183 miners successfully installed, representing approximately 0.4 EH/s, in containers at new facilities in Texas, with thousands of additional miners being installed and prepared for energization
  • The operational mining fleet consists of 36,830 active miners, producing approximately 3.9 EH/s, with thousands of additional miners expected to be energized in May.
  • Produced 299 self-mining bitcoins during April 2022, predominantly due to ongoing maintenance and downtime at the plant in Hardin, MT, reducing potential April bitcoin production by approximately 30%
  • Announced staged transition miners from the fossil fuel-powered facility in Hardin, MT during Q3 2022 as part of the company’s drive to achieve 100% carbon neutrality by year-end 2022
  • Cash on hand was approximately US$40.4 million and total liquidity, now defined as available cash and credit facilities, was approximately US$70.4 million; the company also holds 9,673 BTC with a fair market value of $365.5 million.
  • The Company continues to expect its mining operations to be 100% carbon neutral by the end of 2022.

Bitcoin production update
Year-to-date, Marathon’s mining fleet produced 1,558 bitcoins, a 340% increase over the same period a year ago. By month, the Company’s bitcoin production was as follows:

Total network hash rate

*Note: Upgrades and maintenance to the Hardin, MT power generation station caused Marathon’s Bitcoin mining operations in Hardin, MT to operate at substantially reduced capacity in November 2021, negatively impacting the company’s bitcoin production. company in the month. In April 2022, the company’s bitcoin production was similarly impacted by the maintenance of the power generating station in Hardin, MT.

Total network hash rate source: https://www.blockchain.com/charts/hash-rate

The company last sold bitcoin on October 21, 2020, and since then has been hoarding or “hodling” all bitcoins generated. As a result, Marathon currently holds approximately 9,673 BTC, including bitcoin purchased in January 2021 for an average price of $31,168 per BTC. As of April 30, 2022, the fair market value of one bitcoin was approximately $37,715, which implies that the approximate fair market value of Marathon’s current bitcoin holdings is approximately $365.5 million.

Miner Installs and Hash Rate Growth
In April, weather and maintenance issues caused the power generating station in Hardin, MT, to operate below normal levels, reducing Marathon’s potential bitcoin production by approximately 30% for the month. As disclosed on April 5, Marathon intends to relocate its Hardin miners to more sustainable energy sources in stages during the third quarter of 2022.

During April, approximately 4,200 Marathon miners were successfully installed, awaiting energization, in containers at one of Compute North’s new Texas facilities. These miners were originally scheduled to be powered up on April 17, increasing Marathon’s hash rate by approximately 0.4 EH/s, or 11%, over the previous month. Due to the Company’s energy supplier requiring additional consent from a third party, the energization of Marathon’s miners was rescheduled for the month of May. Currently, the Company does not expect this process to affect future miner deployments.

As the company’s energy supplier completes the energization process, construction on Compute North’s first major Texas facility continues apace and thousands of additional miners are being installed and prepared for energization. Given the current construction and deployment schedule, Marathon continues to expect all 199,000 miners, producing approximately 23.3 EH/sec, to be deployed by early 2023. Additionally, the company continues to expect its mining operations to be 100 % carbon neutral by the end of 2022.

Management Comment
“In April, we increased our bitcoin holdings to 9,673 BTC as we successfully installed nearly 4,200 containerized miners and made substantial progress addressing some of the regulatory and permission challenges related to breaking the mold in behind-the-meter deployment,” said Fred Thiel, manager of Marathon’s President and CEO. “Continued maintenance issues at the Montana power station caused our bitcoin production to drop approximately 30% in April. As we announced in April, we will transition our Hardin miners in stages to minimize downtime and shift them to more sustainable energy sources during Q3.

“In April, approximately 4,200 miners were successfully installed in containers at one of Compute North’s new Texas facilities. These miners were originally scheduled to be powered up on April 17, which would increase our hash rate by approximately 11% during the month. However, we encountered some friction in April as our energy partner required additional consent from a third party to power our installed miners. Encouragingly, we expect this matter to be resolved early this month and we do not anticipate this affecting future deployments.

“While the energy supplier was working on this process, construction on the Compute North facility continued intact and thousands of additional miners are being installed and prepared for energization. Based on what we know today about the pace of construction and deployment, we believe that we can be with our mining portfolio and fully back on track with deployments before the end of this year. Given the progress we made earlier this year, breaking the mold in behind-the-meter deployment and the unique advantages we maintain in our light asset model, we are cautiously optimistic that we are still on pace to hit 23.3 exahash early next year. year. ”

Q1 2022 Results Webcast and Conference Call
Marathon Digital Holdings will host a webcast and conference call today at 4:30 pm ET to discuss its financial results for the quarter ended March 31, 2022, which will be published in a press release ahead of the conference call. To register to join the conference call or listen to the live audio webcast, use this link. The webcast will also be broadcast live and available for playback on the investor relations section of the Company’s website at ir.marathondh.com.

Date: Today, May 4, 2022
Time: 4:30 pm Eastern Time (1:30 pm Pacific Time)
Registration link: LINK

If you have any difficulties connecting to the conference call, please contact the Marathon Investor Relations team at ir@marathondh.com.

Investor Notice
Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described under “Risk Factors” in Item 1A of our most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the SEC on March 10, 2022. If any of these risks occur, our business, financial condition or results of operations are likely to suffer. In this case, the value of our securities may decrease and you may lose some or all of your investment. The risks and uncertainties we describe are not the only ones we face. Additional risks that we are not currently aware of or that we currently deem immaterial could also harm our business operations. In addition, our past financial performance may not be a reliable indicator of future performance and historical trends should not be used to anticipate future results. Future changes to the network-wide mining difficulty rate or Bitcoin hash rate could also materially affect the future performance of Marathon’s bitcoin production. Also, all financial metrics discussions assume mining difficulty rates as of May 2, 2022. Total network hash rate data is calculated from a third-party source, available here: https://www. blockchain.com/charts/ hash rate. Data from third-party sources has not been independently verified. See “Forward-Looking Statements” below.

Forward Looking Statements
Statements made in this press release include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by the use of words such as “may.” , “will”, “plans”, “should”, “expect”, “anticipates”, “estimates”, “continues”, or comparable terminology. Such forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which the Company cannot accurately predict and some of which the Company may not even anticipate and involve factors that could cause actual results to differ materially from those projected. or suggested. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with additional factors under the heading “Risk Factors” in the Company’s Annual Reports on Form 10-K, as they may be supplemented or amended by the Company’s Quarterly Reports on Form 10-Q. The Company undertakes no obligation to update or supplement forward-looking statements that become false due to subsequent events, new information or otherwise.

About Marathon Digital Holdings
Marathon is a digital asset technology company that mines bitcoin with a focus on the blockchain ecosystem and digital asset generation.

Marathon Digital Holdings company contact:
Phone: 800-804-1690
Email: ir@marathondh.com

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