Nasdaq: MARA September 2021

Building

America's Leading

Enterprise

Bitcoin Miner

Marathon At-a-Glance

Building one of the largest & most agile enterprise Bitcoin mining operations in North America by…

AGGRESSIVELY INCREASING MARATHON'S HASH RATE (probability of earning bitcoin)

+7,122% from 0.18 EH/s in Jan. 2021 to

13.3 EH/s in Mid 2022

OPTIMIZING BITCOIN PRODUCTION COSTS Blended mining costs of $5,612 / BTC*

MITIGATING RISKS & INCREASING OPTIONALITY

Investing in miners not infrastructure

Hash Rate Growth

14.0

13.0

12.0

11.0

10.0

9.0

8.0

7.0

6.0

5.0

4.0

2.3%

1.9%

3.0

1.3%

1.8%

0.8%

2.0

0.4%

0.2%

0.4%

1.0

0.0

1/31/21

2/28/21

3/31/21

4/30/21

5/31/21

6/30/21

7/31/21

8/31/21

9/30/21

10/31/21

11/30/21

12/31/21

1/31/22

2/28/22

3/31/22

Mid

2022

MARA's Actual Hash Rate (EH/s)

MARA's % of Global Hash Rate

MARA's Projected Hash Rate (EH/s) once Deployed

All hash rates after August 2021 are estimates based on current shipment, delivery, and installation schedules of miners and are subject to change. * Unaudited costs include cost of electricity + hosting fees = $0.045 / kWh; excludes capital expenditure

Aggressively Scaling Mining Operations To Drive Value

As of September 1, 2021…133,000 miners purchased 1,758 BTC mined YTD 6,695 BTC held YTD

If all miners were deployed today & bitcoin's price was $45,000…*

11% of the global

= 87 BTC / day

bitcoin hash rate

70% carbon neutral mining operations

Revenues = $119.1 million / month, or $1.43 billion / year

Non-GAAP income from operations* = $102.4 million / month, or $1.23 billion / year

150,000

Total Number of Purchased Miners & Scheduled Deliveries

133,000

130,000

128,120

123,120

118,120

113,120

110,000

97,820

90,000

78,120

70,000

63,420

48,720

50,00038,220

32,220

30,000

10,000

-21

-21

-21

-21

-22

-22

-22

-22

-22

-22

-22

*Estimates are based on total network's hash rate as of September 1, 2021 and are not a guarantee of future results. All estimates include 90% efficiency of mining operations.

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

  • Non-GAAPincome from operations excludes the impact of depreciation and amortization of fixed assets, impairment losses on mined cryptocurrency, server maintenance contract amortization, and stock compensation expense and does not include the change in fair value of the Company's investment fund, which purchased 4,812.66 BTC for approximately $150 million in January 2021.

The Marathon Difference

Scale: Growing hash rate 536% from 2.09 EH/s Q2 2021 to 13.3 EH/s by mid 2022

Profitable: Paying $0.045 / kWh for electricity + hosting & producing BTC for $5,612 / BTC;1 margins of c. 85% upon full deployment

Agile: Investing in miners rather than infrastructure; Model provides agility & focuses on maximizing return on assets

Capital Efficient: By end of 2022, potential for return on assets of 2.24x ($2.24 in profit for every $1 spent on assets) 2

Well Capitalized: $70.9 million in cash & 6,695 BTC à $387.3 million in total liquidity;3 consistent access to capital in capital intensive industry with $0 long-term debt

Quality Relationships: With industry leaders enable low energy costs, consistent access to miners, & ample expansion opportunities

1. As of Q2 2021 2. Return on Assets = (2022 Potential Net Income / (Total Avg. Assets at Year End 2022 + 2021) / 2)

3. As of September 1, 2021

Mining - The Engine that Fuels the Bitcoin Ecosystem

Mining - A system that adds transactions

  • provides security to the Bitcoin blockchain; How new bitcoins enter the market

A Miner - a computer designed to solve a mathematical algorithm (i.e., the Bitcoin code)

How it works

A Bitcoin

A miner pools

Once a block is

Once solved, the

The new block of

transaction

together "pending"

formed, miners

network checks the

verified transactions

occurs and is

Bitcoin transactions

compete to "hash"

miner's work (i.e.,

is attached to a

broadcast to

in a "block"

their block (i.e., solve

verifies their "Proof

chain of prior

the network

a cryptographic

of Work" adheres to

blocks, hence

puzzle)

rules of the Bitcoin

"blockchain" (i.e.,

protocol)

the public Bitcoin

Difficult to solve, yet simple

ledger) & the

to verify (Sudoku)

process repeats

For solving the puzzle, miners are rewarded with Bitcoin

Currently, 6.25 BTC per block / Blocks are solved, on avg., every 10 min.

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Disclaimer

Marathon Patent Group Inc. published this content on 19 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 September 2021 16:21:01 UTC.