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.