Marathon Digital Holdings, one of the largest and most technologically advanced Bitcoin mining companies, has made strides in recent years to become a leader in crypto mining.
According to BitcoinCasinos.com, Marathon mined 77% more Bitcoin in May 2023 than in April, representing a 366% year-over-year increase in production. This was partly due to the increasing demand for Bitcoin’s underlying technology, Ordinals.
Ordinals is a protocol allowing added functionality on the Bitcoin blockchain, such as non-fungible tokens and meme coins. This has driven up demand for block space, resulting in a higher hash rate and transaction fees. According to Marathon CEO Fred Thiel, these factors accounted for 11.8% of the total Bitcoin generated in May. The miner also improved its computing power by 9%, bringing it to a total of 15.2 exahashes/second (EH/S).
BitcoinCasinos’ financial analyst Edith Reads commented on the data saying, “The growth in Bitcoin production is significant for Marathon as it puts them ahead of other miners who have yet to adopt similar technologies. It also signals a promising future for the company as they look to capitalize on the current state of the cryptocurrency market. With Bitcoin prices reaching all-time highs this year, miners like Marathon are well-positioned to benefit from increased demand for digital assets.”
Marathon Receives Another Subpoena from SEC
Still, some potential risks could impede Marathon’s progress going forward. The company recently received another subpoena from the U.S. Securities and Exchange Commission related to its operations. This could lead to further scrutiny or even legal action if any violations are found.
The SEC’s investigation is connected to Marathon’s data center facility in Hardin, Montana. The company first revealed that it had received a subpoena from the SEC in November 2021. It has since specified that its “disclosure controls and procedures were not effective at the reasonable assurance level as of March 31, 2023” due to material weaknesses.
Marathon is now cooperating with the SEC as it works to resolve the matter, though it remains uncertain how long this process will take or what the outcome may be. Investors can only hope for a positive resolution that won’t impede Marathon’s growth and success.
Overall, Marathon’s recent leap in Bitcoin production is an impressive feat that speaks volumes about its commitment to innovation and technological advancement within the industry. If they can continue optimizing their operations and remain compliant with regulatory requirements, they should be well-positioned for success going forward.
