Summary
TLDR: Marathon Digital plans to double its hash rate by 2025 using its balance sheet “dry powder” of $1 billion. The upcoming bitcoin halving event will impact mining economics. The company is expanding internationally and expects growth opportunities in the Middle East, Africa, and Latin America. Marathon aims to gain market share as inefficient operators drop out post-halving. Despite missed estimates in gross mining margin, the company’s stock price is still high and it plans to offer up to $1.5 billion in common stock shares.
Key Points
1. Marathon Digital plans to double its deployed hash rate by the end of 2025 using the “dry powder” on its balance sheet, which includes $1 billion in unrestricted cash and bitcoin.
2. The upcoming bitcoin halving event in mid-April will reduce block rewards for miners from 6.25 BTC to 3.125 BTC, increasing operational costs and competition within the mining sector.
3. Marathon is looking to expand its hash rate capacity both domestically and internationally, with plans to grow by 35% in 2024 and reach 50 EH/s by the end of 2025. The company also intends to use its balance sheet to fund acquisitions and technology projects.