Bitcoin mining company Marathon Digital has reported a decrease in the total amount of Bitcoin mined in June compared to the previous month. The company attributed this decline to weather conditions in Texas and a drop in transaction fees.
According to a statement released by Marathon Digital on July 5, the company experienced a 21% decrease in Bitcoin production in June, with 979 Bitcoin mined throughout the month. The main reason cited for this decline was the impact of weather conditions in Texas, where Marathon Digital’s mining operations are located.
It is worth noting that June marks the transition from spring to summer in Texas, and data from the National Weather Service in Dallas shows a significant increase in average temperature between May and June. The average temperature in May was 75.6 degrees Fahrenheit, while in June it rose to 84 degrees Fahrenheit. These warmer weather conditions likely had an impact on Marathon Digital’s mining operations.
This is not the first time that weather has affected crypto mining operations in Texas. Back in February, crypto mining firm Riot Platforms had to shut down 17,040 rigs due to severe winter weather in the state.
In addition to the weather, Marathon Digital also mentioned a significant decrease in transaction fees as a contributing factor to the decline in Bitcoin production. In June, the company’s transaction fees accounted for approximately 5.1% of the total Bitcoin earned, compared to 11.8% in May.
Marathon Digital noted that the emergence of Bitcoin Ordinals had significantly increased transaction fees in May. However, network congestion eased in June, leading to lower transaction fees. Despite these challenges, the company remains optimistic about the future of mining economics.
Coin Metrics, a cryptocurrency analytics platform, recently released a report showing that Bitcoin miners earned $184 million from transaction fees in the second quarter of 2023. This is more than what they earned throughout the entire year of 2022, indicating the potential profitability of Bitcoin mining.
Overall, Marathon Digital’s decline in Bitcoin production in June can be attributed to a combination of weather conditions and a drop in transaction fees. As the company continues to navigate these challenges, it remains hopeful about the future of mining and the potential rewards it can bring.