Bitcoin miner Marathon closes 2022 with $103.7 million cash after paying down debt

Mining

Bitcoin miner Marathon Digital stated that it paid down its revolver borrowings final month, liberating up bitcoin held as collateral and bringing its unrestricted holdings from 4,200 to 7,815 BTC.

On the finish of a tough 12 months for the mining business, the corporate held $103.7 million unrestricted in money. Complete bitcoin holdings had been 12,232 BTC.

“Given the macroeconomic uncertainty heading into 2023, we determined to completely pay down excellent balances underneath our revolving credit score settlement,” Marathon CEO Fred Thiel stated in a press release Thursday. Its revolver borrowings totaled $30 million as of Nov. 30.

Mining firms had confronted a liquidity crunch after months of working at depressed margins, and lots of within the sector have strived to scale back their leverage. Stronghold this week reached a deal to transform $17.9 million of debt into fairness and Core Scientific filed for Chapter 11 chapter with a method to show most of its debt into fairness.

Hash fee

Marathon closed out the 12 months with a hash fee of seven EH/s, which it nonetheless expects to develop to 23 EH/s by mid-2023.

The corporate started an immersion-cooled pilot mission in November. Its preliminary findings counsel it might scale back capital expenditure on servers by roughly 10% versus conventional air-cooled setups and nearly 7% in comparison with single-phase immersion methods, in line with the assertion.

“Whereas it stays to be seen if such enhancements in efficiency could be persistently replicated and carried out at scale, the Firm is inspired by these preliminary outcomes and their capacity to probably enhance Marathon’s aggressive benefits,” the corporate stated.

In December, Marathon expanded an settlement with internet hosting supplier Utilized Digital to incorporate 12,000 machines set to return on-line subsequent month, pending regulatory approval to energise.