Bitcoin miners, Marathon Digital and Riot Platforms have announced their highest monthly production figures since the significant halving event in April. This resurgence signals a robust recovery for the mining sector after the halving reduced miner rewards from 6.25 BTC to 3.125 BTC, a change that initially dampened revenue across the industry.
Marathon Digital’s Strong October Performance
Marathon Digital reported that it mined 717 Bitcoin in October, valued at approximately $48.8 million. The increase in production can be attributed to a remarkable 14% rise in its hashrate, which now exceeds 40 exahashes per second (EH/s). CEO Fred Thiel highlighted that this uptick was instrumental in boosting the company’s output. Moreover, the firm benefited from higher transaction fees during the month, which contributed about 5% to its total Bitcoin production.
A significant contributor to Marathon’s success was its mining pool, MARAPool, and its private mempool, Slipstream. These initiatives enabled the company to capture $400,000 worth of Bitcoin from two high-fee transactions. Despite the favorable production numbers, Marathon faced a 3% decline in block wins due to increased network difficulty, underscoring the challenges miners continue to navigate in the evolving Bitcoin ecosystem.
Riot Platforms Sees Month-on-Month Growth
Similarly, Riot Platforms reported a 22.6% increase in production, mining 505 Bitcoin worth $34.4 million in October. This growth is attributed to an increase in its hashrate to 29.4 EH/s, up from 28.2 EH/s in September, following the installation of new MicroBT miners at its Corsicana facility.
Despite these encouraging production figures, both Marathon and Riot saw their stock prices decline on November 4, with Marathon (MARA) and Riot (RIOT) shares dropping 3.79% and 4.87%, respectively, according to Google Finance data. This suggests that investor sentiment may be influenced by broader market trends rather than the companies’ operational successes.
Future Hashrate Targets
Looking ahead, both companies remain committed to ambitious hashrate targets. Riot has set its sights on achieving 34.9 EH/s by the end of 2024, with an ultimate goal of 100 EH/s by 2027. However, this estimate has been revised down from an initial 36.3 EH/s due to slower-than-expected expansion at its newly acquired facilities in Kentucky.
On the other hand, Marathon aims to reach a hashrate of 50 EH/s before 2025, a target that remains “within sight,” according to Thiel. These targets highlight the competitive nature of the Bitcoin mining landscape, where advancements in technology and infrastructure will play a crucial role in sustaining growth.
The production achievements of Marathon Digital and Riot Platforms in October reflect a significant rebound in the Bitcoin mining sector post-halving. With rising hashrates and innovative mining strategies, these companies are positioning themselves for continued success in an industry marked by volatility and rapid change. As they pursue their ambitious hashrate goals, the focus will remain on adapting to market dynamics and leveraging technological advancements to maximize profitability.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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