Marathon Digital Holdings reported a 6% decline in Bitcoin production for February, citing increased network difficulty and fewer operational days as key factors. The announcement, released on March 4, triggered a 5% drop in the company’s stock during pre-market trading.
Bitcoin Production Decline Despite Hashrate Stability
According to Marathon’s latest Bitcoin production report, the company saw a 4% increase in crypto production per day compared to January. However, overall Bitcoin production fell due to heightened mining difficulty and three fewer operational days in February.
“Blocks won and Bitcoin production decreased by 6% month-over-month, primarily due to a higher network difficulty level and three fewer operational days. Our energized hashrate was slightly above the prior month, and we are close to finishing construction of a 40-megawatt data center in Ohio where we plan to install over ten thousand S21 Pro immersion miners,” said Fred Thiel, Marathon Digital’s chairman and CEO.
AI and Energy Cost Strategy
Despite the drop in production, Marathon Digital remains focused on long-term growth, particularly in artificial intelligence (AI). Thiel highlighted plans to leverage AI for additional revenue opportunities while reducing operational costs by owning mining sites and generating power independently.
“We expect our costs to decline as we realize savings from owning our sites and generating our own power, and we will be laser-focused on efficiency as we drive towards our goal of low-cost energy,” Thiel stated.
Rising Network Difficulty Adds Pressure
Bitcoin’s rising network difficulty continues to challenge miners, particularly after the April 2024 halving event, which reduced mining rewards. As more miners compete, winning new blocks becomes increasingly difficult, impacting overall production rates across the industry.
Marathon Digital is preparing to deploy over 10,000 new S21 Pro immersion miners at its upcoming Ohio data center. However, the company has not provided a specific timeline for when the deployment will be completed.
With growing competition in the mining sector and fluctuating market conditions, investors will closely watch Marathon’s next steps in optimizing efficiency and expanding its operations.
