Ambitious Digital Marathon Increases Bitcoin Mining Target
JAKARTA - In the midst of increasingly fierce Bitcoin mining industry competition, Marathon Digital Holdings, one of Bitcoin mining giants, has announced an ambitious target to increase their hash rate by 2024.
The move comes in response to a recent Bitcoin miner reward reduction event, where the prize for mining a Bitcoin block was cut to half of the 6.25 BTC to 3.125 BTC.
Marathon Digital not only sets a hash rate target higher than 35-37 exahashes per second (EH/s) to 50 EH/s, but has also made significant acquisitions to support this expansion. Marathon CEO Fred Thiel stated that with a strong liquidity position, the company does not require additional capital collection to achieve this target.
Thiel stressed that with advanced equipment and proprietary technology, Marathon is confident it can improve their operational efficiency and reach 21 joules per terahash as they develop.
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In an effort to strengthen its mining capacity, Marathon Digital has invested $87.3 million for 200 megawatt Bitcoin mining facilities from Digital Applied and $179 million for two additional mining sites from Generate Capital. This investment has contributed to a surge in Digital Marathon (MARA) share prices of more than 25% post-reward reductions.
Bitcoin's reduction in revenue has had a direct impact on hashprice, which is a potential income indicator for miners. According to Hashrate Index, Bitcoin's hashprice fell to 57 dollars, indicating a decline in income for miners.
However, there was a temporary spike to 139 US dollars due to increased transaction costs triggered by high activity related to the Rune protocol. However, this increase did not last long as transaction costs returned to their previous levels and mining difficulty levels increased.
Marathon Digital Holdings has demonstrated its commitment to remain a major player in the Bitcoin mining industry through strategic investment and increased hash rate targets. With the recent reduction in rewards, the company has adjusted its strategy to ensure sustainable growth and efficiency.