Shares of Marathon Digital Holdings Inc. experienced a significant boost on Wednesday following the announcement that their bitcoin production for the month of September had more than tripled compared to the previous year. The company also reported a 16% increase from the previous month.
According to Chief Executive Fred Thiel, this surge in bitcoin production was attributed to improved uptime and reduced curtailment activity in Texas. Thiel further highlighted that Marathon Digital’s share of the bitcoin network’s available miner rewards reached a record high of 4.3% in September, surpassing the previous record of 4.1% in July 2023.
Marathon Digital’s stock, tracked under the symbol MARA, showed promising premarket trading growth with a 3.3% rise. However, it should be noted that on Tuesday, the stock experienced a significant decline of 14.4% to $7.30, marking its lowest close since March 28.
Concurrently, the price of bitcoin, indicated by the symbol BTCUSD, saw a 0.6% increase early Wednesday, approaching a five-week high.
Notably, Marathon Digital reported a production of 1,242 bitcoin in September, representing a considerable 16% growth compared to August and an impressive 245% increase from the previous year.
Thiel attributed this growth to various improvements implemented by the company, such as equipment upgrades, leveraging proprietary firmware, and other technical advancements. As a result, Marathon Digital’s average operational hash rate in the United States increased by 20% on a monthly basis, reaching 15.8 exahashes.
In terms of financials, Marathon Digital disclosed that they had sold 800 bitcoin in September to support their monthly operations, manage their treasury, and serve general corporate purposes. As of September 30, the company held a total of 13,726 unrestricted bitcoin, valued at approximately $370 million. Additionally, they possessed $101.2 million in cash and cash equivalents, with a further $471.2 million of restricted cash and bitcoin.
Over the past three months, Marathon Digital’s stock has experienced a decline of 52.4%, while bitcoin itself has dropped by 11.4%. Furthermore, the broader S&P 500 index, represented by the symbol SPX, has seen a decline of 5.1%.
Overall, Marathon Digital’s impressive surge in bitcoin production for September reflects their commitment to technical advancements in the mining process, resulting in significant growth and solidifying their position in the industry.