Marathon Digital Holdings Inc (MARA)

[kairos]

Nice!! MARA on fire ...

[tapioca]

Doubled my position here at 6, if it drops
again I’ll just add.

[tapioca]

Could 5's be the bottom?

[conix]

Marathon Digital to start operations at a reduced capacity this month

Last week Bitcoin miner, Marathon Digital, shared an update on the state of its storm-hit Montana-based facility in Hardin and when it plans to resume mining operations following the recent interruption. The firm halted mining operations in the Hardin site last month because of significant damage to part of its power generating and supply set-up.

The power outage caused by a June 11 storm rendered 30,000 devices (three-quarters of the Marathon’s active fleet) offline. In its damage assessment report, the crypto miner noted that its cooling towers needed repairs. There are also issues in the power generating station that need to be addressed as the firm rushes to be back online as early as this week.

To remain afloat during the period the facility is down, the firm has redirected its active miners (approximately 0.6 exahash) to a third-party mining pool. In April, Marathon Digital revealed it was exploring the possibility of shifting its Bitcoin miners from the coal-powered Montana facility to a location that guarantees sustainable power. The mining firm noted in a press release that it would eye locations with non-carbon emitting power sources and would transition gradually, completing the shift in Q3. No update has been provided on the same so far.

https://www.securities.io/bitcoin-and-ethereum-mining-revenue-slashed-significantly-in-june/

[tymerz]

3 R/S so far for this company, a 4th on the way inevitably.

[Golden Cross]

Will be waiting to buy then

Could see $2.00 to $3.00 range in July.

[tapioca]

I’m a shareholder with an average of around
$12, so I’m now rooting for this to tank all the
way down so I can reload, wherever that will be.

[crudeoil24]

5.55 in premarket! Could see $2.00 to $3.00 range in July.

MARA

[conix]

Getting closer to the washout.

https://www.cnbc.com/2022/06/29/crypto-hedge-fund-three-arrows-capital-plunges-into-liquidation.html

[crudeoil24]

Marathon Digital shares are trading lower after the company announced that its mining operations were impacted by a storm that passed through Montana earlier this month, leaving operations in the region without power.
12:51pm ET 06/29/22

[tapioca]

Still waiting patiently here.

[conix]

Crypto hedge fund at center of crisis faces risk of default as deadline to repay $670 million nears

Mon, Jun 27 2022

Key Points

Three Arrows Capital, a crypto-focused hedge fund, has to meet a deadline on Monday to repay more than $670 million in loans to Voyager Digital or face default.

Voyager said that it “intends to pursue recovery from 3AC” and is talking to its advisors “regarding legal remedies available.”

Three Arrows Capital, or 3AC, is facing a liquidity crisis after the collapse of terraUSD and luna, margin calls on its loans and a massive slump in the crypto market.

Billions of dollars of value have been wiped off the cryptocurrency market in the last few weeks. Companies in the industry are feeling the pain. Lending and trading firms are facing a liquidity crisis and many firms have announced layoffs.

Billions of dollars of value have been wiped off the cryptocurrency market in the last few weeks. Companies in the industry are feeling the pain. Lending and trading firms are facing a liquidity crisis and many firms have announced layoffs.

Three Arrows Capital, a crypto-focused hedge fund, has to meet a deadline on Monday to repay more than $670 million in loans or face default, in a case that could have a ripple effect across the digital asset market.

3AC, as it’s also known, is one of the most prominent crypto hedge funds around and is known for its highly leveraged bets.

But with billions of dollars being wiped off the digital coin market in recent weeks, the hedge fund is facing a potential liquidity and solvency issue.

Voyager Digital, a digital asset brokerage, said last week that it had lent 3AC 15,250 bitcoins and $350 million of the stablecoin USDC. At Monday’s prices, the total loan equates to more than $675 million. Voyager gave Three Arrows Capital until June 24 to repay $25 million USDC and the entire outstanding loan by June 27, Monday.

Neither of these amounts has been repaid, Voyager said last week, adding that it may issue a notice of default if 3AC does not pay the money back.

Voyager said that it “intends to pursue recovery from 3AC” and is talking to its advisors “regarding legal remedies available.”

Voyager Digital and Three Arrows Capital were not immediately available for comment when contacted by CNBC.

Voyager, which is listed on the Toronto Stock Exchange, has seen its shares plummet 94% this year.

How did 3AC get here?

Three Arrows Capital was established in 2012 by Zhu Su and Kyle Davies.

Zhu is known for his incredibly bullish view of bitcoin. He said last year the world’s largest cryptocurrency could be worth $2.5 million per coin. But in May this year, as the crypto market began its meltdown, Zhu said on Twitter that his “supercycle price thesis was regrettably wrong.”

The onset of a new so-called “crypto winter” has hurt digital currency projects and companies across the board.

Three Arrow Capital’s problems appeared to begin earlier this month after Zhu tweeted a rather cryptic message that the company is “in the process of communicating with relevant parties” and is “fully committed to working this out.”

There was no follow-up about what the specific issues were.

But the Financial Times reported after the tweet that U.S.-based crypto lenders BlockFi and Genesis liquidated some of 3AC’s positions, citing people familiar with the matter. 3AC had borrowed from BlockFi but was unable to meet the margin call.

A margin call is a situation in which an investor has to commit more funds to avoid losses on a trade made with borrowed cash.

Then the so-called algorithmic stablecoin terraUSD and its sister token luna collapsed.

3AC had exposure to Luna and suffered losses.

“The Terra-Luna situation caught us very much off guard,” 3AC co-founder Davies told the Wall Street Journal in an interview earlier this month.

Contagion risk?

Three Arrows Capital is still facing a credit crunch exacerbated by the continued pressure on cryptocurrency prices. Bitcoin hovered around the $21,000 level on Monday and is down about 53% this year.

Meanwhile, the U.S. Federal Reserve has signaled further interest rate hikes in a bid to control rampant inflation, which has taken the steam out of riskier assets.

3AC, which is one of the biggest crypto-focused hedge funds, has borrowed large sums of money from various companies and invested across a number of different digital asset projects. That has sparked fears of further contagion across the industry.

“The issue is that the value of their [3AC’s] assets as well has declined massively with the market, so all in all, not good signs,” Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, told CNBC.

“What’s to be seen is whether there are any large, remaining players that had exposure to them, which could cause further contagion.”

Already, a number of crypto firms are facing liquidity crises because of the market slump. This month, lending firm Celsius, which promised users super high yields for depositing their digital currency, paused withdrawals for customers, citing “extreme market conditions.”

Another crypto lender, Babel Finance, said this month that it is “facing unusual liquidity pressures” and halted withdrawals.

[llcoolm11]

I think it is great time to start a position. The upside reward is tremendous while the downside risk has been reduced. While BTC can go lower at this price, it is definitely less than 50%. If it does go lower, I would have cash available to add to your position to lower the cost basis. Not a financial advisor or investment advice. Just what I think the outlook is.

[StocksGoneWild]

He also assumed a lot of dumb shit in that report...looks like he's just shilling for RIOT. BTC is going lower. It might get a temporary relief bounce, but ultimately $10k to $14k seems to be the consensus on the bottom. Well see.

and assumes a $22,000 price for the rest of the quarter. For the third quarter and fourth quarter, B. Riley forecasts BTC to average $25,000 and $30,000, respectively

[Golden Cross]

That is a heck of a downgrade to $9


https://www.coindesk.com/business/2022/06/23/marathon-digital-cut-to-neutral-at-b-riley-on-bitcoin-price-declines/

[llcoolm11]

Most analysts are late getting on and off the train.
They should be leading and not following if they do their job right.
Where were these downgrades when the price started falling?
You know it's time to buy when these downgrades come in after the price has been hammered to its lows.

[StocksGoneWild]

MARA Downgraded today...
https://www.coindesk.com/business/2022/06/23/marathon-digital-cut-to-neutral-at-b-riley-on-bitcoin-price-declines/

[Golden Cross]

Ready to reload soon

[BottomBounce]

$MARA SOS and others https://investorshub.advfn.com/boards/read_msg.aspx?message_id=169215003

[crudeoil24]

Back in MARA @ 6.96 >

[conix]

Marathon Digital keeps on mining despite BTC price slump

Earlier this month, Marathon said it has been accumulating or “hodling” its Bitcoin since October 2020. As of June 1, 2022, the firm held approximately 9,941 BTC.

Marathon Digital keeps on mining despite BTC price slump
News

Despite data showing that the Bitcoin (BTC) price may have fallen to the point of being unprofitable for the average miner, Marathon Digital Holdings says it will continue working to accumulate the leading crypto asset.

Charlie Schumacher, vice president of corporate communications at Marathon Digital, told Cointelegraph on Wednesday that while the company “isn’t immune to the macro environment,” it is “fairly well insulated and well-positioned” to weather the current downturn, due to the low cost of operations and fixed pricing for power

“For reference, in Q1 2022, our cost to produce a Bitcoin was approximately $6,200. We also have fixed pricing for power, so we are not subject to changes in the energy markets.”

Schumacher added that the company has been more focused on its Bitcoin production and the accumulation of the crypto asset, with the belief that the asset will continue to appreciate in the long run.

“Because we report our financials in USD, the price of Bitcoin will always have a material impact on our financial results. To objectively evaluate our progress internally, we try to focus more on our Bitcoin production. It’s important to bear in mind that Bitcoin mining is a zero-sum game,” he added:

“Granted, that Bitcoin is worth less in terms of dollars at the time it is mined, but if you believe in Bitcoin’s ability to appreciate in the long-run, earning more BTC is never a bad thing.”

In a June 9 statement, Marathon said it has been accumulating or hodling its Bitcoin and has not sold any since October 2020. As of June 1, 2022, Marathon held approximately 9,941 BTC, which is worth around $200 million at current prices.

$MARA's May 2022 #bitcoin production and miner installation update is out:

- 19,000 miners (c. 1.9 EH/s) ready to be energized
- Total #BTC holdings = 9,941 BTC #HODL
- Still on pace to achieve 23.3 EH/s by early 2023https://t.co/tgDetL9upF
— Marathon Digital Holdings (@MarathonDH) June 9, 2022

Keep on mining

In fact, Schumacher made the point that as the price of Bitcoin declines, so does the number of people that can continue to mine profitably, which will force inefficient miners out and also decrease the difficulty of mining new blocks:

“When the difficulty rate declines, those who are able to continue mining have the opportunity to earn more Bitcoin.”

Bitcoin’s current hash rate, also known as Bitcoin’s processing power, fell from an all-time-high (ATH) of 231.428 EH/s on June 12 to 205.163 EH/s at the time of writing.

A more pronounced effect occurred a year ago after China’s crackdown on cryptocurrency mining facilities, which went from a hash rate market peak of 180.666 in May 2021 to 84.79 in July 2021.
Price meets average cost of mining

Last week, crypto market data and analytics platform CryptoRank highlighted that on Thursday that the price of BTC was on par with the average cost of mining, noting that for some, it may even be unprofitable to mine at the moment.

#BTC Price Drops to Average Cost of Mining

Due to a significant drop in $BTC price over the past months, $mining has become less profitable. For some #Bitcoin miners, it might even be unprofitable at the moment.

Markus Thielen, chief investment officer of digital asset manager IDEG Singapore, told Cointelegraph that there could be fallout from the mining industry as most had set their budgets in Q4 2021, before the change in market conditions:

“We actually expect that there will be some fall out as most of the miners appeared to set their 2022 budgets in early Q4 2021 and market conditions have materially changed.”

Thielen said they estimate that several of the smaller miners that do not have economies of scale will have a break-even rate of around $26,000 to $28,000. Bitcoin is currently priced at $20,085 at the time of writing.

Last week, a report by S3 Partners identified Marathon Digital Holdings as being one of the United States-listed companies with the most short-seller interest alongside MicroStrategy and Coinbase.

[tapioca]

I will say though, I’ve been surprised that
MARA has been holding up in the 6’s with the
steep decline in BTC.

[tapioca]

I definitely agree about a long term bounce,
but don’t think any of the markets are done
tanking yet, including btc, which I think can continue
to drop significantly this year. I think Mara can drop
much lower, so I’ll continue to be patient, but what the
hell do I know!

[llcoolm11]

While anything can happen, BTC at minimum will have a short term bounce as BTC has dropped 9 days in a row and dropped from low 30s to low 20s just in this short period. I bought at minimum for this short term bounce with hope of a bigger longer term reversal as well as FOMO.

[tapioca]

Although I agree that BTC will
make a comeback back, I wouldn’t place any trust in what Scaramucci says. Would be great if it does happen in
the next 12 months, but for now I’m still waiting for another
drop to possibly add. . If it doesn’t drop and it takes off, great, still have my original shares.

[llcoolm11]

Bitcoin Will Hit $100K In 12 Months, Ex-White House Chief Predicts, Despite Crypto Carnage
https://bitcoinist.com/bitcoin-will-hit-100k-in-12-months

[llcoolm11]

Bitcoin could 'easily' recover to hit $100,000 over next the 24 months
https://finance.yahoo.com/news/bitcoin-could-easily-recover-hit-170238691.html

[tapioca]

BTC down again, just above 20k now.

[llcoolm11]

Getting Ready to Buy Another 1500 Shares

[crudeoil24]

Your a fellow Yankees fan, a Texas Holdem player, and have made some very good MARA trades. I'm all in if MARA goes to $1.00
btw, NY YANKEES have fared well in very bad market years, going way back to the 1930's.

[tapioca]

It’s official: we’ve entered a bear market.
Patience will pay off. Can only watch and
wait now, imo.

[Golden Cross]

Nice, will be ready this time

[easymoney]

I told many few weeks ago as said that Bitcoin probably bottoms around 14000+- but we're in a crashing market so can go lower but ithink December/Jan will bottom so MARA will as well as we ran from the top of my head 0.5+- to$42+-in 2017 then 2020/21 from 0.6+- to $80+- so rinse and repeat over in 2024+- probably.

[Golden Cross]

May be loading down there with you

[easymoney]

Under $1 is my loading zone again just like 2018.

[llcoolm11]

Picked up 1600 shares

[tapioca]

MARA may see 5's today.

[TONY64]

This market decline in general may last until the November elections. I am adding more cash to my trading account and wait for signs of rebound.

[tapioca]

Now that BTC has dropped well below 29k, it's
now possible it can go as low as 20k. Hold on!
Will be tough not to be adding soon.

[Golden Cross]

BTC 24.5k and Mara opens 6.50... Holding off for now...Watching but think MARA will outperform BTC, % wise, when it does bottom and rebound

[Golden Cross]

Dang BTC went into the 26k's

[crudeoil24]

Marathon Digital Holdings Announces Bitcoin Production and Mining Operation Updates for May 2022

[crudeoil24]

Although we continue to install miners at the Texas facilities, we have experienced delays in energization as Compute North’s energy provider awaits federal agency confirmation of its exempt status for tax purposes based upon its arrangements with Compute North,” said Fred Thiel, Marathon’s chairman and CEO. “While these delays have been disappointing, our current understanding is that miners should start to come online this month. We continue to work closely and actively engage with Compute North to gain more insight into the energy provider’s timeline and to ensure that these delays, once resolved, will not impact our future deployments.

“In the meantime, installations of our miners have progressed irrespective of the energization schedule. Currently, in addition to our active fleet, we now have 19,000 miners, representing approximately 1.9 EH/s, that have been installed and ready for energization. Over 9,000 of these units, representing 0.9 EH/s, are at Compute North’s first major facility in West Texas. The remainder are installed at other locations. This first major facility is being completed in four stages. Stage one is already complete. It is our understanding that the entire facility, which will house approximately 68,000 of our miners, will be fully constructed with all miners in installed by the end of the third quarter of 2022.

“These energization delays in Texas, coupled with ongoing maintenance issues at the power generating station in Hardin, MT, negatively impacted our bitcoin production last month. In May, maintenance issues at the power generation station in Montana caused us to produce approximately 47% less bitcoin than what would have been expected based on the network’s hash rate during the month. However, we believe that our production results will improve over time as we move forward with our deployment plan and energize our miners installed in Texas.

“We remain confident that Marathon is well positioned to achieve its performance goals, and we will continue to provide updates as they materialize. We have a strong foundation from which to build, we have a solid pipeline of potential hosting and power arrangements that exceeds our needs and allows us to diversify our operations, and we have a strong balance sheet to support our growth plans. We look forward to continuing to execute on our strategy of achieving carbon neutrality by the end of this year and growing to 23.3 EH/s in early 2023.”

[crudeoil24]

Cash on hand was approximately $59.6 million and total liquidity, now defined as unrestricted cash and available credit facilities, was approximately $86 million.

[crudeoil24]

Marathon’s current bitcoin holdings is approximately $315.1 million.

[TONY64]

Ameritrade doesn’t allow me to short Mara but if they I would have recoup my loses already

[TONY64]

Td doesn’t allow me to short Mara

[tapioca]

Waiting

[crudeoil24]

You buying, or waiting for 6's >

[lakes]

I have never shorted a stock in my life and usually despise most that do but I have to say, this prolonged short attack has been pretty amazing to watch. Of course the company has pretty much stood by and allowed them to do it but none the less, kudos to the shorts.