American mining company Marathon Digital Holdings posted a net loss of $191.6 million in the second quarter, compared to $13 million in the January-March period.

$MARAQ2 financial results and July 22 production update are out:

— Energizing begins in West Texas

— 49,000 miners (c. 4.7 EH/s) installed as of 31/7

– Approximately. 66% of 23.3 EH will be generated by S19 XPs

– Total #BTC holdings = 10,127 #HODLhttps://t.co/o1GOXxuotK

— Marathon Digital Holdings (NASDAQ: MARA) (@MarathonDH) 8 August 2022

The firm announced growth in losses of ~1374% year-on-year due to the following reasons:

• a 44% drop in bitcoin production due to a delay in connecting the Compute North facility in Texas to the power grid and a hurricane damaged a power plant feeding a data center in Montana;
• the decline in digital gold prices affecting the profitability of mining;
• Revaluation of cryptocurrency reserves reaching 10,055 BTC as of June 30;
• Increased costs for moving miners faster from a facility in Hardin, Montana.

The latter is partially offset by the company selling equipment, according to Marathon CEO Fred Thiel.

At the end of the quarter, the firm had $86.5 million on its balance sheet.

Thiel noted that in July, Marathon began connecting devices installed at the Texas site after the powering wind farm received the necessary permits. The company has commissioned 40,000 miners out of the planned 68,000 miners.

According to Thiel, this will allow Marathon to increase its bitcoin mining in the near future, increasing its computational power to 23.3 EH/s in the future.

“We are in the process of modernizing our fleet. So once we reach 23.3 EH/s, ~66% of the hash rate is expected to be generated by miners. [Antminer] The S19 XP, which saves 30% more energy than previous generation devices, said.

Recall that in August Marathon agreed to open a $100 million revolving line of credit from Silvergate Capital, secured by Bitcoin.

The firm previously reiterated its commitment to a long-term strategy of accumulating reserves in the first cryptocurrency.

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