Business
Marathon Patent Group Provides Update on S-9 Antminer Installation
LAS VEGAS, Dec. 18, 2019 (GLOBE NEWSWIRE) -- Marathon Patent Group, Inc. (NASDAQ:MARA) ("Marathon" or the "Company"), today announced that as of December
About this update from Mara Holdings, Inc.
[{"type":"text","content":"LAS VEGAS, Dec. 18, 2019 (GLOBE NEWSWIRE) -- Marathon Patent Group, Inc. (NASDAQ:MARA) (\"Marathon\" or the \"Company\"), today announced that as of December 12th, 2019, the Company has 3,600 S-9 Bitmain 13.5 TH/s Bitcoin Antminers installed and operational. This installation increases the Company’s total Hashing capacity from approximately 14 Petahash per second pre-deployment, to a current per second rate of approximately 50 Petahash.\n The Company previously disclosed it had executed a hosting agreement on October 3rd, 2019 which provided for an installation schedule from the hosting company. The schedule indicated all 7,200 S-9 Antminers were to be installed by December 15th, 2019, absent any equipment receipt delays not in their control. Unfortunately, the hosting company experienced numerous delays, primarily as a result of the delayed receipt of the custom-built containers needed to house our mining equipment, resulting in only half (3,600) miners being installed as of last week. The unforeseen delay did afford management the opportunity to reevaluate the substantial increase of its mining operation given the recent deterioration in Bitcoin market conditions. After the price of Bitcoin bottomed near $3,200 in February 2019, it subsequently rose to over $13,800 in the summer of 2019. The Company’s management believed in early Fall that the market conditions provided it the right opportunity to make the investment to expand its mining operation. Bitcoin prices, had they remained consistent, would have dramatically increased the company’s cash flow; however, as it has turned out, the price of Bitcoin began a steady decline toward $6,500. Based on the change in Bitcoin market conditions, management has made the decision to suspend further deployment of the remaining 3,600 miners at this time. The Company will continue to monitor market conditions in advance of restarting the deployment of our remaining 3,600 miners. Merrick Okamoto, Marathon Chief Executive Officer, stated, “While we were excited to expand our mining operation in October, this subsequent decline in Bitcoin prices would not produce the profits we anticipated. At this time, it does not make strategic sense to double our current mining operation absent certainty that it would produce profits for our shareholders.” Investor NoticeInvesting in our securities invol...