Marathon Digital Holdings, a prominent mining firm, experienced a substantial surge in Bitcoin (BTC) mining output in May 2023, achieving a remarkable 77% increase compared to the previous month. In May, the company successfully mined a total of 1,245 BTC, marking a remarkable 366% growth compared to the same period in 2022.
Fred Thiel, Marathon’s chairman and CEO, attributed this significant spike in BTC production to the simultaneous rise in the firm’s hash rate and BTC transaction fees. The introduction of Bitcoin Ordinals Inscriptions, akin to non-fungible tokens (NFTs) on other blockchains, resulted in a notable escalation of Bitcoin transaction fees last month. In certain instances, these transaction fees surpassed the 6.25 BTC block reward, rendering mining highly lucrative.
Thiel stated, “Leveraging our scale and improved operational efficiency during the month, we were able to seize this opportunity. While such abnormally high transaction fees have been historically rare, we perceive these events as positive indicators for the future of mining economics.”
Approximately 11.8% of Marathon Digital’s total mined Bitcoin in May was attributed to the surge in BTC transaction fees, Thiel disclosed.
During May, Marathon Digital, recognized as one of the largest mining firms globally, elevated its operational hash rate by 9% month-over-month to reach 15.2 exahashes. Furthermore, the company reported a 13% increase in its installed hash rate to 20.1 exahashes compared to the previous month.
As of June 1, Marathon Digital operated an impressive fleet of approximately 133,600 Bitcoin miners, capable of generating 15.2 EH/s. The company aims to achieve its target of reaching 23 EH/s by mid-year.
In May, the mining behemoth sold 554 BTC, while retaining 12,259 BTC as of June 1. Additionally, the firm boasted unrestricted cash and cash equivalents totaling $97.3 million. Marathon Digital intends to continue selling a portion of its Bitcoin holdings to support its monthly operations, manage its treasury, and serve general corporate purposes.