Over the past several months, the market has seen bitcoin miner profitability drop to new lows. These miners who depend on BTC derived from their mining activities have found themselves in a tight spot as the price of bitcoin has been affected. As a result, many miners have sold their BTC holdings to raise funds to continue their operations. However, not all bitcoin miners have produced this result.
Marathon shakes the digital bear
Marathon Digital is one of the most prominent names when it comes to public bitcoin mining. The company has been one of the winners for 2021, seeing as how its share price soared with its popularity. And just as public miners enjoyed the spoils after the 2021 bitcoin bull run, it has come under pressure during the bear trend of 2022.
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The company now sees competitors succumbing to market pressure and is starting to sell its stake. Marathon Digital, however, has refused to succumb to this sales trend. As shown in a recent report, public miners have refused to sell any bitcoins.
Marathon Digital has not sold any BTC since 2020 and was one of the companies to see an increase in its BTC production rate compared to 2021. The company now holds a total of 10,055 BTC after producing 707 BTC during the second quarter of 2022. Accounting for the increase of 8% in mined BTC in the same period last year. Overall, Marathon Digital’s BTC production is up 132% with 1,966 BTC being produced.
BTC price continues to struggle | Source: BTCUSD on TradingView.com
Expanding bitcoin mining capabilities
Marathon Digital is not only selling its BTC, but it is also one of the only companies that has been able to stick to its expansion plan through the downtrend. Marathon Digital highlighted in its report that the storm in Hardin, MT had reduced operations to approximately 6,300 miners. However, the company plans to add new miners to its fleet. It plans to increase this fleet to a total of 199,000 miners by the first half of 2023.
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The company also continues to repay debt with $35 million of outstanding revolving credit line borrowings repaid during the month of June. Its dues now stand at $35 million. It also remains in a good cash flow position, with $88.7 million in cash on hand. Its liquidity profile remains promising with $153.7 million in total liquidity in unrestricted cash and available credit facilities.
On the other hand, some major bitcoin miners were dumping their bitcoins. One of these is Core Scientific. Public miners sold 7,202 BTC in the month of June, more than the total BTC production for the month.
Riot Blockchain and Cathedra Bitcoin sold 250 and 235 BTC respectively. Whereas Argo Blockchain plans to sell some of its bitcoins as well as raise debt to continue its operations.
Featured image from Forbes, charts from TradingView.com
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