Bitcoin mining companies Marathon Digital, Riot Platforms, and CleanSpark experienced significant increases in Bitcoin production during the month of September, resulting in a boost in their share prices on October 4th.
Despite Bitcoin’s price remaining relatively stable, fluctuating between $25,100 and $28,500, these mining firms managed to strengthen their balance sheets. Marathon Digital, in particular, saw a remarkable increase in Bitcoin production, with a total of 1,242 BTC mined in September. This represented a 16% increase from the previous month and an astounding 245% increase compared to September 2022. The surge in BTC production was attributed to a significant boost in the firm’s installed hashrate, which increased by 508% from 3.8 exahashes per second (EH/s) to 23.1 EH/s.
Marathon’s CEO, Fred Thiel, expressed satisfaction with the achievement of reaching the company’s goal of 23 exahashes on an installed basis. He also revealed that the company is exploring opportunities for additional mining locations that offer low-cost renewable energy.
In 2023 alone, Marathon has produced a total of 8,610 BTC. The company’s balance sheet currently holds 13,726 unrestricted BTC along with $101 million in unrestricted cash and cash equivalents, amounting to a total value of $471.2 million. These positive developments translated into a 3.29% increase in Marathon’s share price, which reached $7.54 on October 4th.
Riot Platforms, another Bitcoin mining firm, also recorded a notable increase in BTC production, with a 9% month-on-month rise. Despite strategically curtailing mining operations, Riot managed to produce 362 BTC in September. This was made possible through a long-term contract that allows the company to sell pre-purchased power to its utility provider at market-driven spot prices in exchange for power curtailment credits. Riot CEO Jason Les highlighted the revenue generated from the power curtailment credits, which amounted to $11.0 million, surpassing the net proceeds from Bitcoin sales in August and September.
Riot Platforms plans to further enhance its mining infrastructure by installing an additional 33,000 next-generation Bitcoin miners in mid-2024. Currently operating at a self-mining hash rate capacity of 12.5 EH/s, the company aims to increase this capacity to 20.1 EH/s. Investors reacted positively to these developments, as reflected in a 3.25% increase in Riot’s share price, reaching $9.06 on October 4th.
CleanSpark, yet another Bitcoin miner, achieved its best performance to date during its fiscal year from October 2022 to September 2023. The company produced 643 BTC in September alone and a total of 6,903 BTC for the entire fiscal year. CleanSpark’s CEO and President, Zach Bradford, credited the company’s success to increased efficiency, low energy costs, and the utilization of its facilities at maximum capacity. Investors responded favorably, causing CleanSpark’s share price to rise by 4.61% to $3.63 on October 4th.
Not all mining companies experienced positive results in September. Bit Digital witnessed a 7% decline in Bitcoin production, mining only 130.2 BTC. The decrease was attributed to approximately 600 petahashes of miners going offline due to a mandated maintenance outage by the power utility on September 26th.
Overall, September proved to be a successful month for Bitcoin mining companies, with Marathon Digital, Riot Platforms, and CleanSpark recording impressive increases in Bitcoin production. These achievements have not only strengthened their balance sheets but also contributed to positive movements in their respective share prices.