Marathon Digital, a prominent Bitcoin mining company, has attributed a decline in Bitcoin mining productivity during August to severe weather conditions. According to the company’s statement, the reduction in Bitcoin production compared to July was primarily due to increased curtailment activities in Texas, driven by record-high temperatures.
Despite the challenges posed by the weather, Marathon Digital reported that it successfully mined 1,072 Bitcoins in August, a substantial increase compared to the previous year’s August figures, exceeding them by more than five times. However, this performance represents a 9% decrease compared to the preceding month of July.
The extreme temperatures experienced at Marathon Digital’s Bitcoin mining site in Texas were the primary reason for this month-to-month decrease. The company acknowledged that these temporary shutdowns to protect equipment and maintain the safety of their operations had a significant impact, offsetting the progress made in increasing their operational hash rate and optimizing operations.
As of the report, Marathon Digital claimed to hold 13,286 Bitcoins, valued at approximately $341.9 million. It’s worth noting that the current price of Bitcoin stands at $25,734 at the time of publication.
In addition to Bitcoin mining, Marathon Digital revealed that it sold 750 Bitcoins in August, equivalent to around $193 million. The company intends to continue selling Bitcoin in the coming months to support its monthly operations, manage its treasury, and cover general corporate expenses.
This news aligns with a broader trend in the Bitcoin mining community, where many miners have been selling portions of their holdings in response to Bitcoin price fluctuations. Reports from September 1 indicate that Bitcoin miners initiated a significant sell-off of their Bitcoin reserves. Data from Glassnode reveals that miners began this selling spree on August 26, coinciding with Bitcoin’s price falling below $26,000. Approximately 4,000 BTC has been liquidated by Bitcoin miners within the past week.
Marathon Digital has also faced legal troubles in recent times. On May 2, the company was hit with a class-action lawsuit alleging violations of federal security laws. The lawsuit, filed by the Klein Law Firm on behalf of Marathon Digital shareholders, accuses the company of making false and deceptive statements over nearly two years. It claims that Marathon Digital failed to disclose information that could have had a material adverse impact on its financial condition.