Saturday, June 22, 2024

Marathon Digital Sells 63% of Self-Mined Bitcoin in May

This post was originally published on cryptonewsfarm.com

Marathon Digital, a leading Bitcoin mining firm, has been aggressively selling its mined Bitcoin (BTC) in the aftermath of the recent halving event. According to their monthly report, they sold over 60% of their May production, raising questions about their strategy.

In May, Marathon sold a significant portion of its mined Bitcoin. Their report details selling 390 BTC, representing a staggering 63% of the 616 BTC they mined that month. This stands out in comparison to other miners like Riot Platforms, who held onto their entire 215 BTC May production, or CleanSpark, who only sold a small portion of their 417 mined BTC.

The halving event, which occurs roughly every four years, cuts the reward for mining a Bitcoin block in half. The most recent halving took place in late April, reducing the reward from 6.25 BTC to 3.125 BTC per block.

Despite the halving’s impact, Marathon claims they mitigated its effect by increasing the number of blocks mined. In May, they mined 170 blocks, a 32% increase compared to April. This resulted in a production decline of only 27%, according to Fred Thiel, Marathon’s CEO.

To stay competitive with shrinking rewards, Bitcoin miners are focusing on fleet expansion and efficiency improvements. CleanSpark, for instance, is actively pursuing mergers and acquisitions, aiming to secure additional mining opportunities.

Marathon’s Global Expansion Plans

Marathon, however, appears to be looking beyond domestic expansion. They recently partnered with Kenya’s Ministry of Energy and Petroleum to optimize renewable energy projects in the country. Additionally, they have a pilot project underway in Paraguay focused on optimizing energy structures.

“Our goal is to generate 50% of our revenue from overseas operations by 2028,” stated Thiel. This ambitious strategy suggests a belief that international markets hold significant growth potential for Bitcoin mining.

The Role of Bitcoin Miners in Energy Infrastructure

Bitcoin mining offers a unique benefit – it can act as a flexible load, stabilizing the energy grid. Miners can adjust their energy consumption based on grid demands, absorbing excess renewable energy during peak production periods and reducing consumption during peak usage times. This flexibility can contribute to a more efficient and sustainable energy infrastructure.

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Author: Sb

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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