Join the hunt for $12,000,000+ in NEXO Tokens!

Learn More

Marathon Digital's hash rate is pulling ahead of expectations a week after the halving

Marathon Digital's recent acquisitions and expansions have contributed to its accelerated mining capacity.

Illustration of a large bitcoin mining data center with rows of computers and servers.

Share this article

Marathon Digital, a Bitcoin mining firm based in Florida, has announced that it is ahead of schedule on its growth plans and may achieve its hash rate target of 50 exahash per second (EH/s) by the end of 2024, a year earlier than initially anticipated.

The company’s energized hash rate stood at 27.8 EH/s on March 31, and executives had previously stated in February that Marathon intended to grow its hash rate by approximately 35% in 2024, with the goal of reaching 50 EH/s by the end of 2025.

However, CEO Fred Thiel now believes that the 50 EH/s target could be attainable by the end of 2024.

Thiel attributed the revised growth projection timeline to Marathon’s capacity boost through acquisitions and its access to hash rate via current machine orders and options. He emphasized that the company’s current liquidity position fully funds this growth target, eliminating the need for additional capital raises.

“With our current liquidity position, this growth target is also fully funded and there is no need for us to raise additional capital to achieve our objective,” Thiel noted.

As of the end of March, Marathon had $324 million in cash and 17,381 BTC on its balance sheet, with the BTC stack worth approximately $1.1 billion based on the bitcoin price as of Friday morning.

The company has been actively expanding its operations, finalizing the purchase of two mining facilities in Texas and Nebraska earlier this year and subsequently acquiring an additional Texas site owned by Applied Digital for $87 million in cash.

As Marathon works towards its 50 EH/s target, Thiel stated that the company expects to improve its fleet efficiency to 21 joules per terahash (J/PH).

The acceleration of Marathon’s growth plans comes at a crucial time for the Bitcoin mining industry, as the recent halving event has reduced per-block mining rewards from 6.25 BTC to 3.125 BTC. Industry experts anticipate that less efficient miners with higher power costs and limited access to capital may struggle in the aftermath of the halving, potentially leading to segment consolidation within the sector.

Share this article