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Bitcoin Mining Drops 9% Due to ‘Record High’ Temperatures – Marathon Digital

source-logo  beincrypto.com 06 September 2023 03:03, UTC

Marathon Digital, a Bitcoin mining company, has blamed extreme weather conditions for the decrease in Bitcoin mining productivity in August.

“The decrease in bitcoin production from July was largely due to increased curtailment activity in Texas due to record high temperatures,” the statement noted.

Climate Conditions To Blame For Bitcoin Mining Decrease

Marathon Digital’s CEO, Fred Thiel, states that the company mined 1,072 Bitcoins in August. This surpasses the August figures from the previous year by more than five times. However, it represents a 9% reduction compared to the preceding month of July.

Marathon Digital’s US Operational Highlights. Source: GlobeNewsWire

According to the report, the month-to-month decrease in comparison to July is due to the exceptionally elevated temperatures experienced at Marathon Digital’s Bitcoin mining site in Texas.

The report stated,

“These temporary shutdowns more than offset the progress we have made to increase our operational hash rate and optimize our operations.”

Marathon Digital claims to hold 13,286 Bitcoin, which is currently valued at $341.9 million.

At the time of publication, the current price of Bitcoin is $25,734.

Additionally, Marathon Digital stated that it sold 750 Bitcoin in August, which is the equivalent of approximately $193 million.

The company plans to continue selling Bitcoin in the coming months to facilitate “monthly operations, manage its treasury, and cover general corporate expenses.”

However, recent news indicates a broader trend of selling within the Bitcoin mining community. It’s been reported that many miners are selling portions of their holdings in response to Bitcoin price fluctuations.

On September 1, reports indicated that Bitcoin miners initiated a significant sell-off of Bitcoin from their collective reserves.

Glassnode’s data reveals that miners commenced this selling spree on August 26, around the same time that the BTC price fell below $26,000.

The data further illustrates that Bitcoin miners have successfully liquidated approximately 4,000 BTC within the past week.

To learn more about crypto mining, read BeInCrypto’s guide: How To Mine Cryptocurrency: A Step-by-Step Guide

Marathon Digital Legal Troubles In Recent Times

On May 2, a class-action lawsuit accused Marathon Digital of violating federal security laws. The Klein Law Firm filed a complaint on behalf of Marathon Digital shareholders.

It alleges that the company made false and deceptive statements over nearly two years.

Marathon Digital reportedly failed to disclose information that would have had a material negative impact on its financial condition.