Despite buying opportunities, marathon concentrates digitally on organic growth at short notice

Despite buying opportunities, marathon concentrates digitally on organic growth at short notice

Marathon Digital wants to almost triple his hash rate

Marathon Digital will probably continue to concentrate on organically tripling his hash rate by the middle of next year-before you may react to other buying meals among necessary Bitcoin miners, said CEO Fred Thiel on Tuesday.

The comments during the conference conference on the results of the company on Tuesday doubled the strategy of the manager, which block works were announced last month.

"We would prefer to buy the latest, state-of-the-art miners, use them so that we have an advantage in energy consumption ... and then drive the type of hosting agreements that fit our model," said Thiel on Tuesday. "I don't see that we will definitely consolidate the industry, but apart from this, there can be unique opportunities, and we will be open to checking things."

For example, Thiel said last month that marathon would keep an eye on cheap assets from fighting miners. For example, the mining-RIG operator could try to buy a hosting site if such a purchase is strategically useful.

Industry observers announced in the beginning of this month that the consolidation of the miners was imminent because some have reported financial pressure in the past few weeks, such as Argo Blockchain, Core Scientific and Iris Energy.

Marathon Digital recorded a net loss of around $ 75 million in the third quarter, an improvement compared to the net loss of $ 192 million in the second quarter.

The share price, which has dropped by almost 70 % since the beginning of the year, fell by about 5 % during trading hours on Tuesday. The stock fell 0.8 % in post -market trade from 5:30 p.m. ET.

Many crypto-related shares suffered a blow

The loss was partially due to the decline in the book value of its digital assets and a lower Bitcoin production.

The company produced 616 bitcoins from June to September - which corresponds to a decline of 51 % compared to the third quarter of 2021 and a sequential decrease of 13 %. This was due to the exit from his work in Hardin, Montana, and delays in the power supply of his location in McCamey, Texas.

Marathon has turned its lower Bitcoin generation so far in the fourth quarter by producing a record number of 615 bitcoins in October to increase its total stock to 11,285 BTC.

The company said last week that around 32,000 miners added last month to increase its hashrate to about 7 exahashes per second (EH/S). Marathon wants to reach about 9 EH/s and until mid -2023 23 EH/S by the end of 2022.

"We expect Bitcoin to be traded in this range of $ 18,000 to $ 22,000 for some time, and we think that we are very well positioned to survive this storm and get out very attractive on the other if Bitcoin increases in price," said Thiel.

managers said that the company would continue to keep Bitcoin, but could try to sell part of the BTC produced in the future to cover the operating costs.

The competitor of Marathon Digital, Riot Blockchain, reported a net loss of almost $ 37 million in the third quarter on Monday. The stock fell by about 7 %on Tuesday.

Analysts recently said Blockworks recently said that companies such as Marathon and Riot are in a strong financial position to take advantage of opportunities, but they expect more suffering to be expected before further bankruptcies and takeover take place.

stronghold mining and hut 8 mining are planned for Earnings Calls for Wednesday at 5:00 p.m. ET or Thursday at 10:00 a.m. The Miner Bitfarms based in Canada will publish its results of the third quarter on November 14th at 11:00 a.m.


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The Post Marathon Digital focused on organic growth despite buying opportunities and is not financial advice.

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