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Investing.com|EditorPollock Mondal

Published Nov 15, 2023 03:41AM ET

NEW YORK - Marathon Digital (NASDAQ:MARA) Holdings, a leading Bitcoin mining company, is bolstering its operations and preparing for the Bitcoin halving event next year, with significant strides in international expansion and increased hash power. The company reported a substantial year-over-year increase in Bitcoin production, with a 467% surge from the third quarter of last year to the same period this year.

The firm's current online hash rate stands at 19.2 EH/s, and it holds an impressive 13,396 BTC valued at approximately $474 million. Marathon has set ambitious targets to further boost its hash rate to 23 EH/s, despite recent energization delays at its Garden City, Texas facility.

Marathon is making strategic moves to mitigate high operational costs and delays experienced in the US by transitioning to an international joint venture model. This approach is focused on geographical diversification and cost reduction. The company has planned expansions in Abu Dhabi and Paraguay for 2024, which will include a 30% increase in capacity through new plants. These ventures, particularly in Paraguay where renewable-powered Bitcoin mining is planned, mark a significant step towards diversifying their energy sources and reducing costs.

The broader Bitcoin network is experiencing intense competition with its daily average hash rate nearing an all-time high of 428 EH/s and mining difficulty reaching a peak of 64.6T. Despite a recent uptick in Bitcoin prices, mining profitability remains challenging across the industry, with hash price lingering at $0.079 per TH/s per day.

Marathon's proactive strategy aims to position the company advantageously within this competitive landscape. However, there are concerns about the company's cost structure which remains higher than many of its peers. This could risk profit margins should Bitcoin prices dip below the $30,000 mark following the halving event.

The halving event is highly anticipated within the cryptocurrency community as it historically impacts both the supply side dynamics and market prices of Bitcoin. As such, Marathon's efforts to scale up operations and reduce costs through international partnerships could be crucial in maintaining profitability in a post-halving environment.

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Written By: Investing.com

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Marathon Digital expands mining ahead of Bitcoin Halving By ... - Investing.com