Marathon Digital (NASDAQ: MARA) stock jumped during intraday trading Wednesday following the release of its May 2024 Bitcoin production and mining updates.
Marathon Digital has reported a 22% increase in its operational hash rate, reaching 25.7 EH/s. The company has also revealed a growth in its Bitcoin holdings to 17,857 BTC, bringing the total value of its cash and Bitcoin holdings to $1.5 billion as of May 31, 2024.
Despite the Bitcoin Halving event in May, Marathon effectively mitigated its impact by bolstering the number of blocks won by 32% compared to April. This resulted in the production of 616 Bitcoin—a modest 27% decrease from the previous month. However, the average operational hash rate showed a significant improvement.
Fred Thiel, Chairman and CEO of Marathon Digital, noted the strength of the company’s MARA pool and reiterated its commitment to achieving a target hash rate of 50 EH/s by the end of 2024. Thiel also highlighted Marathon’s international endeavors, particularly its agreement with Kenya’s Ministry of Energy and Petroleum to support energy utilization and optimize renewable energy projects.
The report further revealed that Marathon energized approximately 5,000 additional miners in May, bolstering its operating fleet’s capacity to produce 30.6 EH/s. The company achieved a peak overall hash rate of 28.1 EH/s during the month.
Financially, Marathon’s balance sheet showcased robust liquidity, with $290.4 million in unrestricted cash and cash equivalents at the end of May. The combined balance of unrestricted cash and Bitcoin holdings increased significantly from the previous month.
Marathon recently agreed to boost the energy sector in Kenya and released its first-quarter results for 2024. The company also executed the sale of 390 Bitcoin in May, with plans to continue selling a portion of its holdings to support operations and manage its treasury effectively.
Marathon Digital (NASDAQ: MARA) Stock Reaction
On Wednesday, MARA stock rose 2.68%, closing at $21.07, marking a 4.10% increase for the week. The trading volume was 62,964,688 shares, significantly higher than the average daily volume of 49.78 million.
