At the heart of the Bitcoin mining industry, Digital Marathon now asserts itself as the undisputed leader. Not only has the company solidified its place as the largest publicly traded Bitcoin miner globally, but it also continues to outpace its main competitor, Core Scientific.
Marathon Digital: robust growth in the face of struggling competitors
Marathon Digital Holdings (MARA) is no longer just one of many companies in the Bitcoin mining industry. In July, it cemented its dominant position as the largest publicly traded Bitcoin miner in terms of self-mining hash rate.
This means that the computing power deployed in its facilities is mainly used to mine bitcoins intended for his own walletsand not for those of its customers.
In June, Marathon reported an operational hash rate on the Bitcoin network of 17.7 exahash/second (EH/s). This figure already exceeded that of the previous market leader, Core Scientific (CORZ), which then had 15 p.e. of mining machines installed. But Marathon didn’t slow the pace. In July, the company reported an even higher hash rate of 18.8 PE/s.
On his side, Core Scientific is experiencing tougher times. As of December 2022, the company has been in bankruptcy proceedings. Its self-mined hash rate remained largely unchanged from the previous month its Chapter 11 filing. This stagnation contrasts sharply with Marathon’s steady progress.
Rapid growth and strong stock market performance for Marathon in 2023
Faced with the weather challenges and operational setbacks of the previous year, Marathon was particularly proactive in 2023. The company has multiplied its efforts to commission an impressive number of machines, thereby boosting its operational power to a remarkable level of 15 p.e. from May.
At the same time, Marathon’s share price rose significantly, with a 365% increase in 2023while Bitcoin was gaining nearly 78.75% over the same periodaccording to figures from TradingView.
Many Bitcoin miners are also rushing to connect their latest machines in anticipation of Bitcoin’s reward halving. This event, inscribed in the fundamentals of Bitcoin, halves the rewards miners receive for successfully mining a Bitcoin block. The next division is scheduled for April 2024.
The challenges ahead
However, the road to success is not without pitfalls. Environmental issues related to the energy consumption of Bitcoin mining have become an important topic. US President Joe Biden plans to introduce a tax on cryptocurrency mining by 2024aimed at reducing greenhouse gas emissions.
Moreover, regulation around cryptocurrencies rapidly evolving, which could present challenges for Marathon Digital in the future. Marathon Digital’s journey into the Bitcoin mining world is iconic growth and maturation of the cryptocurrency industry.
The future probably still holds many opportunities and challenges for Marathon Digitalbut one thing is certain: the company seems ready to face them.
Source : Coindesk