Marathon Digital needed immediate protection from the hash rate. After this year’s first quarter surge, Bitcoin production increased. To everyone’s surprise, it was stagnant for months. It surged up to $30,000 approximately. Previously it was stuck at $26,000.
Various mining firms are causing a hash rate. Which was initially affecting Marathon Digital. Mining goes through excessive pressure in order to produce bitcoin. Even with keeping the prices low.
Not only Marathon but other mining firms or companies went through the paying debt phase.
After the major bank collapsed in the market. Major BTC needed to be released. The Silicon Valley bank had more than 200,000 million worth of BTC. Back then President Joe Biden with the help of the treasury minister confirmed freeing them.
Last year crypto put pressure on BTC mining company Core Scientific filed for Chapter 11 bankruptcy. They produced more than the normal rate.
The stagnant Bitcoin prices were affecting the whole crypto industry. Again in April, it surged to $30,000. Now it’s $27,082.
Marathon Digital peaked in the first quarter this year at a million. Previously their loss rate was running $12.9 million. After the surge, it has decreased to $7.2 million this year. Almost half. The production has increased keeping prices low.
During the first three months of this year around 2,195 BTC was mined. It was worth around $60 million according to Fred Thiel, marathon Digital CEO.
The same Marathon Digital who were struggling with debt situations when the banks collapsed. They took up loads from the silver gate bank. When it collapsed the mining firm could only free around 3132 Bitcoin. Which the bank was keeping as collateral during the loan.