Marathon Patent Group, the mining company listed on Nasdaq has in the latest reported having received and deployed two shipments of brand-new mining machines. With the news, the company’s hash rate, the measuring unit of the processing power of the Bitcoin network has increased from 130 petahash to 186 petahash per second.
What it has in store?
In an announcement made by the company, it implied that it received 700 WhatsMiner M31S+Miners from MicroBT and 600 S19 Pro Antminers from Bitmain. All 1360 have been deployed at Marathon’s hosting facility with Compute North accelerating the hash rate increase. This year between 19th May and 11’th June the company had announced that it had purchased 1,000 additional S19 Pro Antminers. Out of the 500 units are set to arrive in September while the remainder would be knocking doors in December this year. When these 1000 S-19 Pro Miners are received and deployed it will add a further 110/ph to Marathon’s production at least from the September installations. But once the December shipments are deployed and installed, it will add a further 153/ph to the company’s productions taking its total production to 296/ph by this year-end.
The first set of orders of S19 Pro Antiminers from the recently announced 10,500 Unit long term purchase agreement with Bitmain starting in January 2021, is all set to deliver finally and fully in June 2021. With the inclusion of the 10,500 units, the company’s hash rate production will touch 1,115/ph which is substantial. When all the expected miners are finally installed, Marathon’s total aggregate hash rate production will touch 1.5 Exahash. CEO Merrick Okamoto opined that,
“We believe that the increased hash rate production will mean the company will become cash-flow positive on a go-forward basis for the first time since we embarked on this pivot to become a bitcoin mining company”
In the last 4 months, Marathon has seen a sea change in its financial position mainly because the company’s operational processes have streamlined. The company stands debt-free after it paid over $7 million for advanced ASIC Bitcoin Mining equipment available. A good percentage of it is already in production with 1/3rd is slated to be installed by the year-end. The increase in hash rate has great prospects of getting converted into positive cash flows, the only impediment being the future price of Bitcoin and hash rate difficulty. The company had paid $4.6 million to Bitmain for contract execution and it will pay an additional $4.6 million on September 20th this year. This will bring the total deposits up to 40% of the $23 million purchase. Marathon shares are already down by 50% from its yearly high but are already 10% down from their Monday open. It is currently trading around $2.52 as per the latest estimation. The future payments that represent 8.33% of the total will further be paid on a monthly basis when the miners are shipped in January 2021 and the final deliveries happening in June 2021.