Marathon Digital Targets 23 EH Hash Rate Despite 2022 Losses

Marathon Digital, one of the largest public bitcoin miners, suffered a net loss of $687 million in 2022 but is on track to more than double its hash rate and expand to a new region. The company’s CEO, Fred Thiel, informed Blockworks that $651 million of the losses were unrelated to business operations, stemming from impairment charges on mining rigs and digital assets.

Analysts at Compass Point Research and Trading maintained a buy rating for the stock, while the price target was lowered from $11.50 to $10. Marathon’s stock price was at $7.83 as of 1:00 pm ET on Thursday.

Marathon is on track to grow its hash rate from 9.5 exahashes (EH) at the end of February to 23 EH by mid-year. The Florida-based miner energized about 19,000 bitcoin miners last month, including 8,000 S19 XPs from Bitmain’s most recent ASIC hardware release.

The company’s expansion plans include a joint venture with FS Innovation to build and operate two crypto mining sites in Abu Dhabi, totaling 250 megawatts. Thiel referred to this as the firm’s “first foray into vertical integration” and noted that the site would utilize self-designed immersion systems, reducing server costs compared to air-cooled setups.

In conclusion, despite suffering significant losses in 2022, Marathon Digital remains optimistic about its growth prospects. The company is on track to achieve its ambitious hash rate target and is looking to expand into new regions, such as Abu Dhabi. Furthermore, Marathon plans to diversify its site mix and focus on opportunities with renewable energy and strong infrastructure, setting a positive outlook for the future.