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Crypto Miner Marathon Secures 200MW Energy Capacity from Applied Blockchain

Bitcoin miner Marathon Digital Holdings has announced the completion of a deal with Ethereum and altcoin mining company Applied Blockchain to secure at least 200 megawatts of energy capacity.

The deal with the hosting provider comes with an option to extend the energy capacity to 270 megawatts. The announcement added that the company would release about 66,000 previously purchased miners, which represents a hash rate of 9.2 exahash per second (EH/s) across two hosting facilities.

The deal adds additional 42 megawatts of hosting capacity that the bitcoin miner has already secured with Compute North on July 5, as well as 12 megawatts from a number of other providers, The Block reported.

Fred Thiel, Marathon’s chairman and CEO, said, “we believe we have now secured enough hosting capacity to support our target of achieving approximately 23.3 exahashes per second of computing power for Bitcoin mining in 2023.”

Although the deal has been settled, Applied Blockchain’s facilities are still under construction. The Block reported that miner installation will begin in the fourth quarter of 2022 and finish around mid-year 2023.

According to Applied Blockchain chairman and CEO Wes Cummins, “demand for our hosting services remains robust despite the volatility in the cryptocurrency markets, giving us continued confidence in the growth potential of our business for fiscal 2023 and beyond.”

Applied Blockchain currently hosts two facilities. The one in Texas will supply Marathon with 90 megawatts, while the one in North Dakota will provide 110 megawatts.

According to The Block, In June, bitcoin mining production from Marathon fell by about 47.8% after a storm broke down most of their mining fleet offline.

However, the bitcoin mining company’s stock was up by 21.39% on Monday, prior to their announcement, The Block added.

Marathon Digital Overclocks To Get An Edge

In a recent update, Marathon Digital Holdings, which runs one of the most significant Bitcoin mining operations in North America, revealed that the company has been experimenting with overclocking in order to bolster its position as a market leader in the Bitcoin mining business. This endeavor was undertaken with the intention of strengthening the company’s position as a market leader.

The practice of increasing the clock speed of a computer’s central processing unit (CPU) or graphics processing unit (GPU) over the maximum speed that was rated by the manufacturer is referred to as “overclocking.” The word “overclocking” refers to this technique. It is possible that this will result in improved performance in some types of workloads.

According to a press release, Marathon mined a total of 475 Bitcoin for the month of December 2022, which brought the company’s total Bitcoin output for the fiscal year 2022 to 4,144 Bitcoin. When compared to the 3,197 Bitcoin that were created in 2021, this is a 30% increase.

After Marathon made the decision to conduct experiments with overclocking, the chairman and chief executive officer of the company, Fred Thiel, provided the following response to the news: “These efforts position us to develop our competitive advantages further and become a more efficient and resilient business as we continue to grow.”

Among the most current statistics that was made available by the company, it has around 69,000 active miners who are capable of earning approximately 7 exahashes each and every second while working together.

The digital currency industry is served by Silvergate Bank, a supplier of financial services that operates as a bank and provides solutions for liquidity issues. There is a possibility that Marathon Digital’s success in the Bitcoin industry might be attributed to the partnership that the company has established with Silvergate Bank.

On the 16th of December, a class-action complaint against Silvergate was submitted in an effort to hold the company responsible for the alleged role it played in the loss of monies belonging to FTX customers. The complaint was filed in an effort to hold the company responsible for the role it played in the loss of monies.

Bitcoin Miner Marathon Mined 979 BTC and Liquidated 700 in June 2023

Marathon is a digital asset technology company that focuses on supporting and securing the Bitcoin ecosystem, and it is in the process of becoming one of the largest and most sustainably powered Bitcoin mining operations in North America as it claims.

In June 2023, Marathon Digital Holdings created 979 Bitcoin (BTC), increasing the year’s total to 5,120 BTC.

The installed hash rate climbed by 8% to 21.8 EH/s, while the operational hash rate increased by 16% to 17.7 exahashes per second (EH/s).With the start of mining activities, the joint venture in Abu Dhabi is on schedule to achieve 7 EH/s by the end of the year.

The joint venture in Abu Dhabi began mining operations and is on track to reach 7 EH/s by the end of the year.

The company reported unrestricted cash and cash equivalents of $114 million and increased unrestricted Bitcoin holdings to 12,538 BTC (approximately $382 million) as of June 30, 2023.

The decrease in bitcoin production compared to the previous month was due to weather-related curtailment in Texas and a significant decrease in transaction fees.

Marathon’s operating fleet increased to approximately 149,900 Bitcoin miners, theoretically capable of producing approximately 17.7 EH/s, as of July 1, 2023.

Marathon sold 700 BTC during June and plans to sell a portion of its bitcoin holdings in future periods to support monthly operations, manage its treasury, and for general corporate purposes.

Mining Valuations in Focus: Bitdeer and Sphere 3D Lead November's Stock Insights

The November valuation analysis of public Bitcoin mining stocks uncovers notable disparities, pinpointing potential under and overvaluations in the sector. Bitdeer emerges as significantly undervalued when assessed through the EV-to-Sales lens, while companies like Marathon appear overvalued. Sphere 3D presents a low EV-to-Hashrate ratio, suggesting a bargain based on its hardware assets, although its growth prospects are limited.

The investment realm of Bitcoin mining stocks is a battlefield of valuations, where discerning the undervalued from the overvalued is key to strategic portfolio positioning. The November update on mining stock valuations offers investors a critical look into this sector, leveraging a suite of financial metrics to guide investment decisions.

A comprehensive view of the mining industry’s financial landscape reveals a spectrum of investment opportunities. The EV-to-Sales ratio, a straightforward yet potent indicator, singles out Sphere 3D as potentially undervalued, with Bitdeer also standing out for its profitability and growth potential.

The EV-to-Hashrate ratio, a metric bespoke to the Bitcoin mining industry, indicates the premium investors pay for mining efficiency. Sphere 3D’s low ratio suggests its hardware is nearly priced at market value, whereas Northern Data’s high ratio may not correlate with operational efficiency.

Investors often turn to the EV-to-EBITDA ratio to gauge a company’s cash flow capabilities. This metric places Bitdeer and DMG in a favorable light due to their low ratios, implying robust EBITDA performance against market valuation.

The Price-to-Book ratio, while subject to accounting variances, provides another angle to assess company valuations. Soluna and Sphere 3D exhibit low ratios, which could intrigue value investors, while Sato’s elevated ratio may be reflective of a conservative valuation of its assets.

This valuation update illustrates the stark contrasts within the mining stock market, with significant differences in valuation multiples across the board. Investors are encouraged to weigh these insights against their strategies, focusing on stocks like Bitdeer that offer quality at a lower valuation.