Bitcoin Marathon Digital Mining Is Hampered By Weather In Texas And Decreased Transaction Fees

Bitcoin mining company Marathon Digital (photo: Twitter @ MarathonDH).

JAKARTA - Bitcoin mining company Marathon Digital attributed a recent Bitcoin price drop of 21% in June to weather conditions in Texas and a drop in transaction fees.

According to a statement on July 5, Digital Marathon experienced a 21% decline in production in June compared to May. The total number of Bitcoins mined throughout the month reached 979 Bitcoins.

The main reason quoted for the decline in production is the impact of weather conditions in Texas, where Marathon's main operations are located.

"The decline in production compared to last month was due to weather-related restrictions in Texas and a significant drop in transaction fees," Marathon Digital was quoted as saying by Cointelegraph.

Early June marked a transition from spring to summer in Texas. According to data from the National Weather Service in Dallas, Texas, there was an average temperature increase of nearly 8.4 degrees Fahrenheit between May and June. The average May temperature was 75.6 degrees, while June reached 84 degrees.

On February 6, Cointelegraph reported that crypto mining company Riot Platforms experienced a blackout of 17,040 rigs in its operations in Texas due to the state's "severe cold weather".

The statement also noted that Digital Marathon transaction fees fell to about 5.1% of the total Bitcoin obtained in June, compared to 11.8% obtained in May.

The statement highlights a significant increase in transaction fees for Bitcoin Ordinarys in May, and despite reduced network congestion in June, the company still has a positive view of the "future of mining economy".

This isn't the first time the weather in Texas has had a major impact on crypto miners.

In July 2022, Peter Wall, CEO of crypto mining company Argo Blockchain, which operates a data center in West Texas, told Cointelegraph that the Electric Reliability Council of Texas issued a conservation warning, forcing Argo, along with many other mining operators in the area, to temporarily close mining activities.

In more recent news, a July 5 report by crypto analytic platform Coin Metrics revealed that Bitcoin miners earned 184 million US dollars (Rp2.7 trillion) from transaction fees in the second quarter of 2023, which was higher than their 2022 revenues.