Bitcoin Miner Marathon Digital Pays Off Revolver Borrowings
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The revolver borrowings held by bitcoin miner Marathon Digital were paid off last month, releasing the collateralized bitcoin and increasing its unconstrained holdings from 4,200 to 7,815 BTC. The company ended a challenging year for the mining sector with $103.7 million in unconstrained cash. There were 12,232 BTC in total bitcoin holdings.
Marathon CEO Fred Thiel released a statement on Thursday saying, “Given the macroeconomic uncertainty heading into 2023, we decided to fully pay down outstanding balances under our revolving credit agreement.” As of November 30, it had $30 million in revolver borrowings.
After months of operating at low margins, mining BTC firms encountered a liquidity crisis, and many in the industry have worked to lower their leverage. This week, Core Scientific filed for Chapter 11 bankruptcy with a plan to convert the majority of its debt into stock, while Stronghold struck an agreement to convert $17.9 million in debt into equity.
Bitcoin Miner Marathon Digital Ends 2022 on a Low Note, Hash Rate-Wise
Marathon ended the year with a hash rate of 7 EH/s, but it still anticipates that it will increase by threefold to 23 EH/s by the middle of 2023.
In November, the firm began a pilot operation using immersion cooling. According to the statement, preliminary results indicate that it might lower capex on servers by over 10% compared to conventional air-cooled setups and by nearly 7% compared to single-phase immersion systems. The company said in a statement:
“While it remains to be seen if such improvements in performance can be consistently replicated and implemented at scale, the company is encouraged by these preliminary results and their ability to potentially increase Marathon’s competitive advantages.”
Marathon expanded its contract with hosting company Applied Digital in December to cover 12,000 machines that are expected to go online the following month, subject to regulatory approval to activate.
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