Mara Holdings, Inc. · NASDAQ:MARA
Mara — Marathon Digital Holdings — Investor Presentation (September 2022)
36 slides from Mara's investor presentation, Sep 13, 2022
Slide 1: Securing & Supporting the Bitcoin Ecosystem
MARATHON DIGITAL HOLDINGS “= Securing & Supporting the * Bitcoin Ecosystem * NASDAQ: SEPTEMBER 2022 °
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Statements made in this presentation include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by the use of wo
Slide 3: Recent Company Highlights
Recent Company Highlights TICKER SYMBOL MARA RECENT CORPORATE UPDATES Share Price $14.43 $71.4 Million in Unrestricted Cash Market Cap $41.7B $130 Million in Unrestricted BTC (6,483 BTC) 34,000 Miners in Operation > 3. Shares Issued & Outstanding 116.8M 2 SZEnS Transitioning Out of Hardin, MT Facili
Slide 4: Marathon at-a-Glance
Marathon at-a-Glance AGILE, SCALABLE, & SUSTAINABLE OUR MISSION To support the development and security of the world’s first public blockchain (Bitcoin) by building one of the largest, most agile, and most sustainably operated bitcoin mining operations in the world, OUR STRATEGY Invest in Miners > I
Slide 5: Scale + Low Cost of Operations > Resilience & Leverage
Scale + Low Cost of Operations > Resilience & Leverage In 2023, once all 23 EH/s of miners are installed & energized... Bitcoin “Bear” Case Base Case Bitcoin “Bull” Case Potentially Higher BTC Production Potentially Improved Financial Performance Price of Bitcoin $19,200 Price of Bitcoin $26,560 Pri
Slide 6: Bitcoin vs Internet
Bitcoin vs Internet Users Growth At the end of 2021, there were as many users of Bitcoin as there Bitcoin’s adoption is growing faster than the Internet's did, with nearly 1 billion users expected by 2025 + BTC NETWORK'S NUMBER OF USERS® @ BITCOIN ym PROJECTED INTERNET @ BITCOIN USERS USERS USERS 1B
Slide 7: A Bitcoin Miner of a Different Breed
A Bitcoin Miner of a Different Breed THE MARATHON MINING METHOD: BE AGILE. GET BIG. Maximizing return on assets and agility by investing in miners rather than infrastructure Growing hash rate from 3.2 EH/s in Aug 2022 to 23 EH/s by mid 2023 < 25 full time employees EFFICIENTLY SCALING +60% of hash r
Slide 8: Asset Light Model: Optimized for Agility & Flexibility
Asset Light Model: Optimized for Agility & Flexibility LACK OF INFRASTRUCTURE INVESTMENT LEADS TO... Co-locating at Increasing Optimizing ROI renewable energy sites Flexibility on CAPEX + Decreased dependency on + Ability to move servers to sites * Maximize investment in revenue fluctuating grid ene
Slide 9: Asset Light Model: Key to Staying Ahead of the Technology Curve
Asset Light Model: Key to Staying Ahead of the Technology Curve INVESTING IN THE INDUSTRY’S MOST EFFICIENT EQUIPMENT Mining continues to evolve, MINING HARDWARE (LOG SCALE, 3/TH)® which requires... + Reinvesting in or renovating existing facilities ~ every 5 years CPUs SeONTSTIMARATSINAGT rate from
Slide 10: Asset Light Model Provides Superior Return & Optionality
Asset Light Model Provides Superior Return & Optionality THEORETICAL RETURNS OF AN ASSET LIGHT VS. IRR OVER A 5-YEAR PERIOD* “VERTICALLY INTEGRATED” MODEL OVER A 5-YEAR PERIOD* ASSET LIGHT “VERTICALLY “VERTICALLY INTEGRATED” ASSET LIGHT INTEGRATED” ASSET LIGHT “Assumptions IMPROVEMENT Total Capital
Slide 11: Distributed Mining Operations
Distributed Mining Operations Installing 23 EH/s by mid 2023 with multiple hosting providers across multiple geographies On track to be 100% carbon neutral © KING MOUNTAIN, TX | Wind + Grid © ELLENDALE, ND | Grid ~10EH/s | ~200 MW + -8.0EH/s | ~180 Mw ~ 29,000 active servers + Under construction e +
Slide 12: ESG - Environmental. Social. Governance.
ESG - Environmental. Social. Governance. DOING GOOD & DOING IT WELL ENVIRONMENTAL On track to be 100% carbon neutral Transitioned away from coal- powered plant in Hardin, MT the source Incentivizing & facilitating the transition to renewable energy Solar @— © Leveraging sustainable power at mm ol Vo
Slide 13: Innovating within the Technology Stack
Innovating within the Technology Stack MARA RESEARCH LAB + Researching and testing new technologies (incl. immersion, hardware, firmware, miner software, etc.) to improve mining efficiency MARA INCUBATOR + Supporting the development of new technologies & businesses seeking to build, expand, & enrich
Slide 14: In Summary...
Slide 15: Marathon at-a-Glance
Marathon at-a-Glance AGILE, SCALABLE, & SUSTAINABLE OUR MISSION To support the development and security of the world’s first public blockchain (Bitcoin) by building one of the largest, most agile, and most sustainably operated bitcoin mining operations in the world, OUR STRATEGY Invest in Miners > I
Slide 16: Recent Company Highlights
Recent Company Highlights TICKER SYMBOL MARA RECENT CORPORATE UPDATES Share Price $14.43 $71.4 Million in Unrestricted Cash Market Cap $1.7B $130 Million in Unrestricted BTC (6,483 BTC) 34,000 Miners in Operation 2 E Shares Issued & Outstanding 116.8M P 2 S2EH/s Transitioning Out of Hardin, MT Facil
Slide 17: Appendix
Slide 18: Income Statements
Income Statements Three month period ended June 30, Year to date period ended June 30, 2022 2021 2022 2021 Revenues $24,921,816 $29,321,857 $76,639,534 $38,474,672 Costs and expenses: Cost of revenues: Energy, hosting and other costs (16,684,759) (4,056,168) (29,201,710) (5,724,646) Depreciation and
Slide 19: Supplemental information
Supplemental information Supplemental Information: Three month period ended June 30, Year to date period ended June 30, 2022 2021 2022 2021 Operating margin (1) $ 8,237,057 $25,265,689 $ 47,437,824 $ 32,750,026 bitcoin ("BTC") production during the period, in BTC 707.1 654.4 1,965.6 846.2 Adjusted E
Slide 20: Recent Trends
Recent Trends Quarterly BTC production Revenue (in millions) 1,500 $60.3 $60.00 ize e258) $51.7 $51.7 1,098 1,000 $40.00 oy Or $29.3 : $24.9 500 $20.00 0 $0.00 Q2 2021 Q3 2021 4 2021 Q1 2022 Q2 2022 22021 3 2021 4.2021 1 2022 2.2022
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures We provide investors with a reconciliation from net income to the non-GAAP measure known as Adjusted EBITDA as a component of this presentation. For each period in question, we define “Adjusted EBITDA” as (a) GAAP net income (or loss) plus (b) adjustments to add back the
Slide 22: Leadership Team
Leadership Team Fred Thiel | Jim Crawford e CHAIRMAN & CEO [CHIEF OPERATING OFFICER i war> MA Sim Salzman Hugh Gallagher 3] Raymond Walintukan Charlie Schumacher Ashu Swami Jolie Kahn Adam Swick Will Beam Board of Directors J. Fred Thiel Georges Antoun Kevin DeNuccio Said Ouissal Sarita James Jay Le
Slide 23: Timeline of Expansion & Growth
“Timeline of Expansion & Growth” Purchased 4,813 BTC for avg. price of $31,168 Q1 2021 MARATHON Enhanced leadership team, incl appointing Fred Thiel to CEO Q2 2021 Rebranded to Marathon Digital Holdings Announced agreement with Compute North to deploy miners in Tx MARA added to Russell 2000 Index Q3
Slide 24: Mining - The Engine that Fuels the Bitcoin Ecosystem
MINING - The Engine that Fuels the Bitcoin Ecosystem MINING - A system that adds transactions A MINER - a computer designed & provides security to the Bitcoin blockchain; to solve a mathematical algorithm How new bitcoin enter the market (i.e., the Bitcoin code) How it Works ey am Lt ew a> OO S| > y
Slide 25: The Path to Profitable Mining
The Path to Profitable Mining t POWER COST OF (HASH RATE) PRODUCTION More powerful miners > er cost yher profit increased power (hash rate) Increased power > higher probability of earning BTC Annual Mining Profitability Price 6.25 52,560 Price of — x x x _ . + F Network Hash Rate of BTC Block Reward
Slide 26: Mining Is Critical Infrastructure for the Internet of Money
Mining Is Critical Infrastructure for the Internet of Money THE INTERNET BITCOIN DEMATERIALIZED COMMUNICATION DEMATERIALIZING FINANCIAL/MONETARY NETWORKS Inherent Qualities Inherent Qualities + Open + Open + Global + Global + Permissionless Permissionless - Censorship-Resistant + Censorship-Resistan
Slide 27: Power with a Purpose - Expanding Renewables, Increasing ROI, & Mitigating Blackouts
Power with a Purpose - Expanding Renewables, Increasing ROI, & Mitigating Blackouts Accelerating the “Energy Transition” Marathon at Full Deployment in Mid 2023 Bitcoin mining is fundamentally different from + Working directly with some of the largest renewable energy providers in North America trad
Slide 28: Bitcoin's Energy Usage Is Negligible, but Its Sustainability Is Industry Leading
Bitcoin’s Energy Usage Is Negligible, but Its Sustainability Is Industry Leading The Bitcoin Mining Industry in Q2 20224 Annual Electricity Consumption (TWH) Uses an inconsequential amount of global energy (15 bps) & generates negligible carbon emissions (9 bps) 60% predominantly using sustainable p
Slide 29: Halving Events
“Halving Events” BITCOIN SUPPLY & BLOCK SUBSIDY BY YEAR™® BITCOIN’S FINITE SUPPLY ALGORITHM“ zu 7 Block rewards reduced by half every 210,000 blocks ™ 4s vom (c. 4 years) until all 21,000,000 BTC mined in c. 2140 son “ > 2 % OF BTC oe Fi SUPPLY Fm »§ MINED AT a hed END OF PRICE OF DAY 2 som ax DATE
Slide 30: Bitcoin & Traditional Assets ROI
Bitcoin & Traditional Assets ROI AS OF August 11, 202217 BITCOIN GOLD S&P 1 YEAR “47% +2% Be: 2 YEAR +108% -7% +25% 3 YEAR +129% a1 +45% 4 YEAR +284% +49% +49% 5 YEAR +468% +39% +73% 6 YEAR +3,979% +34% +93% 7 YEAR +8,946% +61% +102% 8 YEAR +4,408% +37% +116% 9 YEAR +24,073% Oo +149% 10 YEAR +187,28
Slide 31: Assumptions, Glossary, & Footnotes
Slide 32: Asset Light & Vertically Integrated Key Assumptions
Asset Light & Vertically Integrated Key Assumptions OVERALL ASSUMPTIONS Network's hash rate growth is primarily based on BitOoda's case 5 (bear), case 6 (base), and case 7 (bull) projection.!® Base case hash rate accelerates to ~300 EH/s by YE '22, ~350 EH/s by YE '23, and ~360 EH/s by April '24. Fo
Slide 33: Marathon's BTC Production and Revenue Projections - Assumptions
Marathon’s BTC Production and Revenue Projections - Assumptions OVERALL ASSUMPTIONS + Bitcoin price & network's hash rate estimates are based on 2022 YE hash price and a linear projection for bitcoin price & network hash rate using bear/base/bull scenarios (case 3, 4, 5) presented by BitOoda’s The W
Slide 34: Glossary of Relevant Terminology
Glossary of Relevant Terminology BITCOIN (BTC) - a type of digital currency in which a record of transactions is maintained and new units of currency are generated by the computational solution of mathematical problems, and which operates independently of a central bank; a unit of bitcoin. BLOCKCHAI
Slide 35: Notes, Sources, & References
Notes, Sources, & References 1. “Marathon Digital Holdings, Inc. (MARA) Stock Price, News, Quote & History.” Yahoo! Finance. Accessed September 12, 2022. https:/finance.yahoo.com/quote/MARA/. 2. “Marathon Digital Holdings Announces Bitcoin Production and Mining Operation Updates for August 2022.
Slide 36: September 2022
SEPTEMBER 2022 + HOLDINGS Z 0 i q tg < 2 DIGITAL * NASDAQ: MARA
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