Marathon Digital Holdings Announces Production of Bitcoin and

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– Company produces a record 1,259 BTC in Q1 2022, up 556% year-over-year from Q1 2021 and up 15% sequentially from Q4 2021
– Total bitcoin holdings increase to 9,374 BTC
– Hash rate increased by 14% from the previous quarter, with deployments expected to ramp up in the coming weeks as the authorization and approval process is finalized

LAS VEGAS, April 04, 2022 (GLOBE NEWSWIRE) — Marathon Digital Holdings, Inc. (NASDAQ:MARA) (“Marathon” or “Company”)one of the largest bitcoin self-mining companies in North America, today released unaudited bitcoin (“BTC”) production and miner installation updates for March 2022.

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

Company Highlights as of April 1, 2022

  • Produced a record 1,258.6 self-mined bitcoins in Q1 2022, a 556% increase from 191.8 self-mined bitcoins in Q1 2021 and a 15% sequential increase from 1,098 .2 self-mined bitcoins in Q4 2021
  • Bitcoin production in the first quarter of 2021 reportedly increased by 17% from the previous quarter to 1,281.5 BTC, keeping the global hash rate constant from December 31, 2021 to March 31, 2022
  • Production of 436.1 self-mined bitcoins in March 2022, a 21% increase from 360.4 self-mined bitcoins in February 2022
  • Increase in total bitcoin holdings to approximately 9,373.6 BTC with a fair market value of approximately $427.7 million
  • Cash on hand was around $118.5 million and total liquidity, defined as cash and bitcoin holdings, was around $546.2 million.
  • Successful deployment of 1,320 miners in March
  • 14% increase in hash rate in the first quarter of 2022 compared to the fourth quarter of 2021
  • Received around 5,600 S19 ASIC miners from BITMAIN during the month of March
  • The existing mining fleet consists of 36,830 active miners producing approximately 3.9 PE/s
  • After receiving final permits and regulatory approval, miners are currently expected to be live in the coming weeks and deployments will ramp up throughout 2022
  • 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 has produced 1,258.6 bitcoins, an increase of 556% over the same period of the previous year. By month, the company’s bitcoin production was as follows:

Marathon Digital Holdings, Inc.

*Note: Hardin, MT power plant upgrades and maintenance resulted in Marathon’s bitcoin mining operations in Hardin, MT operating at significantly reduced capacity in November 2021, which negatively impacted the company’s bitcoin production for the month. For more information, see the press release dated 03/12/2021.

Source of total network hash rate: https://www.blockchain.com/charts/hash-rate

The company last sold bitcoins on October 21, 2020 and since then it has been accumulating or “stores” all generated bitcoins. As a result, Marathon currently holds approximately 9,373.6 BTC, including the 4,813 BTC the company purchased in January 2021 for an average price of $31,168 per BTC. On April 1, 2022, the fair market value of one bitcoin was approximately $45,539, implying that the approximate fair market value of Marathon’s current bitcoin holdings is approximately $427.7 million.

Miner installs and hash rate growth
Marathon’s current strategy is to deploy its miners primarily behind the meter in sustainable, carbon-free power plants. In order to maximize the availability of the Company’s miners, grid connection is being established at these locations when the renewable power plants operate intermittently. Establishing this connection to the network is a new process that required additional coordination and authorizations from various parties, including the network operator. This protracted approval process delayed Marathon miner deployments by approximately 45 days during the first quarter of 2022. However, in March, the company learned that full approval had been received and that the power-on initial was expected in the coming weeks.

Currently, container deployments continue at an accelerated pace at Compute North’s new facility in Texas. These facilities are located in multiple locations and include a 280 megawatt (MW) site in West Texas. Despite slight changes to the early deployment schedule, Marathon continues to expect all of its purchased miners to be deployed by early 2023, by which time the company’s mining operations are expected to consist of approximately 199,000 miners. of bitcoins, producing around 23.3 PE/s. Additionally, the Company continues to expect its mining operations to be 100% carbon neutral by the end of 2022.

Management commentary
“In the first quarter of 2022, we increased our bitcoin production by 15% compared to the previous quarter and produced a record 1,259 bitcoins even as the global hash rate increased by approximately 17%,” said Fred Thiel. , CEO of Marathon. “Our bitcoin production would have increased by 17% to 1,282 BTC had the global hash rate remained constant since the end of Q4 2021. We continue to hold, or HODL, all of our bitcoins, and as a result, we now hold 9,374 bitcoins. , cementing our position as one of the largest bitcoin holders among publicly traded companies.

“At Marathon, we are constantly pushing the boundaries to propel our business and our industry forward. Not all industries operate at the same pace as us, and implementing innovative solutions can sometimes take time. Deploying behind the meter in renewable energy installations has many benefits for our business, the grid and the local community, but this pioneering approach comes with unique challenges that we have had to overcome: including reinjecting grid electricity in large scale power plant.

“Generally, electricity flows from power stations to the grid. However, to ensure we had a constant power supply when the renewable sources were running intermittently, we also needed power to flow back from the grid to the utility-scale power plant. This is a new process, and it is taking longer than expected for the various parties involved to coordinate and complete the authorization and approval process. As a result, the main ramp of our deployments shifted by approximately 45 days during the first quarter.

“Encouragingly, in March we learned that our hosting provider and power companies had received approval to move forward with our full deployments for good. Therefore, we believe that these delays are now behind us. Currently, container deployments continue at an accelerated pace. Barring further regulatory hurdles or unforeseen events, we expect to see new miners being boosted in the coming weeks and this process accelerating throughout the year. Despite the changes to our schedule, based on what we know today, we still believe we are on track to reach 23.3 PE/s early next year.

“Our primary focus at Marathon remains the deployment of our miners. Given our record first quarter, our ability to work alongside our partners to overcome obstacles, and the positive news we have recently received regarding deployments, we remain confident in our ability to continue executing our strategy of doing of Marathon one of the largest and most agile and sustainably mined Bitcoin miners in North America.

Notice to Investors
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 31 December 2021. If any of these risks were to occur, our business, financial condition or results of operations would likely be adversely affected. In this case, the value of our securities could fall and you could lose part or all of your investment. The risks and uncertainties we describe are not the only ones we face. Additional risks not currently known to us or that we currently deem to be immaterial may also adversely affect our business operations. Additionally, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to predict future results. Future changes in the network-wide mining difficulty rate or Bitcoin hash rate could also significantly affect the future performance of Marathon’s Bitcoin production. Additionally, all discussions of financial metrics assume mining difficulty rates as of March 2022. Total network hash rate data is calculated from a third-party source, which is available here: https:/ /www.blockchain.com/charts/hash-rates. Data from third-party sources has not been independently verified. See “Safe Harbor” 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 use of words such as “may”, “shall”, “plan”, “should”, “expect”, “anticipate”, “estimate”, “continue” or comparable terminology. Such forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which cannot be accurately predicted by the Company and some of which may not even be anticipated 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 encouraged to consider the factors listed above as well as the additional factors under “Risk Factors” in the company’s annual reports on Form 10. -K, which may be supplemented or modified by the company’s quarterly reports on Form 10-Q. The Company assumes no obligation to update or supplement any forward-looking statements that become untrue as a result of subsequent events, new information or otherwise.

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

Marathon Digital Holdings Company Contact:
Phone: 800-804-1690
Email: [email protected]


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