A Massive Storm has ruined Marathon’s Crypto Mining Capacity Marathon Digital Holdings — one of the leading cryptocurrency mining companies — said that 75% of its operations are currently without power because of a devastating storm that passed recently through the state of Montana. Some miners in that region are expected back to work during the first week July.
The Thunderstom’s Consequences
In the last few weeks, the weather conditions in Montana’s northwest have been very severe. This has caused power outages and blocked infrastructure. One of the giants in the digital asset mining field — Marathon Digital Holdings — was also affected. According to a company announcement, a tornado that struck the region at the beginning of June halted operations of all 30,000 miners operating in the area. “On Saturday, June 11, a severe storm passed through the town of Hardin, damaging several structures, including the power generating facility that supplies Marathon’s bitcoin mining operations with power.” It is worth noting that the 30,000 miners account for 75% of Marathon’s total active fleet. At the beginning of July, partial resolution is expected for the damages. Even when that’s done, the firm’s productivity will stay significantly reduced until the problem is solved completely. Marathon revealed its plans to relocate some of the miners from its Montana facility to other parts of the United States in April. It might accelerate its plans, considering the current negative conditions. Giving further information on the issue was Fred Thiel — Chairman and CEO of Marathon: “Bringing miners fully back online will take time, and we are committed to doing everything we can to rebuild our hash rate and to improve our bitcoin production… Separate from this event, construction and installations in Texas have continued as scheduled, and given the current macro environment, our pipeline of potential new hosting arrangements remains strong.”
Marathon’s Recent Endeavors
In November 2021, the company took on $500 million of debt and promised to use the money to purchase bitcoin and BTC mining machines. Marathon purchased 78,000 Antminer S-19 XP mining machines for close to $900 million a few months later. Bitmain will deliver 13,000 units each month according to the agreement in July, August September, October, November and December of this year. Marathon is a publicly traded firm. Stocks rose nearly 35 percent after the announcement about the multimillion-dollar purchase of mining equipment. However, shares traded at $6.25 in the months that followed.