Cryptocurrency Mining Plummets by 42% in January
Date: 2024-02-09 Author: Dima Zakharov Categories: BLOCKCHAIN
Marathon Digital Holdings experienced a substantial drop in its mining output, down by 42% in January compared to the previous month. Despite a 7% increase in hash rate to 26.4 EH/s, the average operational hash rate plummeted by 14% to 19.3 EH/s due to weather-related factors and equipment failures, according to the company's press release. Marathon's CEO, Fred Thiel, attributed these setbacks to weather conditions and equipment failures, emphasizing efforts to address short-term disruptions. The company aims to enhance its hash rate in the coming weeks.
Marathon also announced the completion of a facility in Abu Dhabi and continued project implementation in Paraguay. As of January 31, 2024, Marathon held 15,741 BTC, opting to acquire 183.5 BTC instead of selling at an average price of $39,738 per coin. However, the firm plans to liquidate some digital assets in the future to support monthly operations, treasury management, and overall corporate objectives. Thiel previously speculated that Bitcoin could reach a new high of $125,000 by the end of 2025, with price fluctuations becoming more stable.
Argo Blockchain reported a 20% decline in mining output for January, generating 124 BTC, attributing it to reduced transaction fees, increased network difficulty, and adverse weather conditions affecting operations in Quebec and Helios, Texas. The company's revenue decreased by 19% to $5.3 million, holding 18 BTC as of January 31.
Riot Platforms mined 520 BTC, down 16% from December and 30% from January 2023, holding 7,648 BTC and realizing 212 BTC in sales. The company received 77 BTC in credits for responding to ERCOT's electricity demand-supply ratio. Riot plans to capitalize on discounted Bitcoin prices post-halving while developing a facility in Corsicana, Texas, expecting a hash rate of 29 EH/s by the end of 2024.
HIVE Blockchain Technologies produced 234.6 BTC in January, maintaining 1,939 BTC by month-end, with a hash rate of 3.88 EH/s. The company's hash rate decreased by 5.6% due to cold weather affecting data center locations in Sweden, Iceland, and Canada.
Bitfarms mined 357 BTC in January, down by 20% from December, with a hash rate of 6.5 EH/s. Severe winter storms in North America contributed to a decline in energy consumption as part of network stability programs.
