Mara Holdings, Inc. · NASDAQ:MARA
Mara — Marathon Digital Holdings — Investor Presentation (November 2021)
25 slides from Mara's investor presentation, Nov 19, 2021
Slide 1: Building America's Leading Enterprise Bitcoin Miner
Building | Die vnaL woLaiNas America’s Leading Nasdaq: MARA Enterprise p! € MARATHON © November 2021 Bitcoin Miner
Slide 2: Safe Harbor Statement
MARATHON 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
Slide 3: Marathon At-a-Glance
Hash Rate G th Marathon At-a-Glance “eee a 445 ; : = Fully Depl Building one of the largest & most agile enterprise |, tal Bitcoin mining operations in North America by... 120 AGGRESSIVELY INCREASING MARATHON’S HASH 110 RATE (probability of earning bitcoin) 10.0 9.0 +7,123% from 0.18 EH/s in Jan. 20
Slide 4: Aggressively Scaling Mining Operations To Drive Value
Aggressively Scaling Mining Operations To Drive Value As of November 1, 2021... 133,000 miners purchased 2,516 BTC mined YTD 7,453 BTC held If all miners were deployed today & bitcoin’s price was $45,000...* 8% of the global 75 BTC / day bitcoin hash rate Revenues = $92.4 million / month, or $1.11 b
Slide 5: The Marathon Difference
é The Marathon Difference Scale: Growing hash rate 393% from 2.7 EH/s in Q3 2021 to 13.3 EH/s by mid 2022 Profitable: Paying $0.042 / kWh for electricity + hosting with projected BTC production costs of $6,235 / BTC? Agile & Capital Efficient: Investing in miners rather than infrastructure; Model pr
Slide 6: Mining - The Engine that Fuels the Bitcoin Ecosystem
Mining - The Engine that Fuels the Bitcoin Ecosystem Mining - A system that adds transactions & provides security to the Bitcoin blockchain; How new bitcoins enter the market ABitcoin transaction occurs and is broadcast to the network A miner pools together “pending” Bitcoin transactions in a “block
Slide 7: MaraPool as a Differentiator
MaraPool as a Differentiator Mining Pool Distribution (1 Week Average) As of 11/14/21 5) MaraAPoot’ Powered by Marathon Others S anroot Transparent block rewards Carbon neutral mining Exclusive access to services f2pool provided by IM NYDIG BTC.com O 22700 13.3 EH/s from just Marathon’s miners at fu
Slide 8: Bitcoin Mining Is the Foundation of Blockchain
& MARATHON Bitcoin Mining Is the Foundation of Blockchain Blockchain Internet Payment Privacy Custody Social Media oe ae) We BoDwiale reventen oo = OO Meta ; : © Voulube bitpay venmo {Tails SPwagzer — OP eetie Ce wW om Development Exchanges Adoption E-Commerce Somanet bys” toll Sverige ' G can aon (
Slide 9: Adoption is Here
:MARATHON Adoption is Here Institutional investors, banks, & ie . countries are coming on board Traditional Payment Processing & FinTech taking BTC mainstream Marathon Shareholders 21,000,000 BTC mined by 2140 BN NYDIG @ncr BLackRock Vanguard Today ae ee ema © Fidelity 1 block every 10 min. 7 6.25 B
Slide 10: The Path to Profitable Mining
The Path to oO Profitable Mining Costs of Production Lower costs > higher profits in bull markets & survivability in bear markets Annual Mining Profitability x 6.25 x 52,560 (= 4 of BTC block reward tocayser) ) Marathon Network hash rate Doesn't Price of BTC Block reward & # of blocks/year Control P
Slide 11: The Marathon Method
:MARATHO The Marathon Method Typical Mining Business Models Growth Strategy: Invest in miners rather than infrastructure “QFQO @coresciennrce’ (9 HIVE & MARATHON MARA. G nuts Qist © Invests in Mining Machines fs Invests in Facilities Buying Miners Building Infrastructure + Invest $30M to purchase mi
Slide 12: Our Mining Operations
MARATHON Our Mining Operations — Hosted by (@COMPUTENORTH BITMAIN Peesty leading performance, accelerated akota Marathon’s original mining facility timelines, & competitive pricing To date: a aC an Purchased c. 130,000 $19 miners > Premier customer status Blended cost paid per TH = $27.11 Montana Po
Slide 13: ESG in Action
ESG in Action Global Electricity Production Bitcoin as a % of Consumed Electricity 17% 0.38% Marathon’s Focus By the end of Q1 2022... 70% carbon neutral mining operations By the end of FY 2022... 100% carbon neutral mining operations 83% 99.62% Hardin, MT: Revitalized dormant power plant @ Unusea c
Slide 14: Financial Overview
J - Financial Overview = MARATHON ITAL HOLDINGS
Slide 15: Increasing BTC Production & HODLing
MARATHON Increasing BTC Production & "HODLing” As of November 1, 2021 * BTC mined & held YTD: 2,516 BTC 27,280 miners deployed generating * Total BTC holdings: 7,453 BTC 2.96 EH/s (up 1,500% YTD) Growth in BTC Mined per Month 9,000 40% 8,000 aos 7s 7,453 35.4% 35% 7,000 sea 6,226 Boom | a 30% 5,518
Slide 16: Recent Company Highlights
Recent Company Highlights Asvof November'1, 2074 As of November 17, 2021 $20.9 million in cash icker Symbol $478.3 million in cash + BTC holdings Share Price $50.95 27,280 miners installed > 2.96 EH/s Market Cap $5.1B 417.7 BTC mined in October Shares Issued & Outstanding 102.6M 2,516 BTC mined in 2
Slide 17: Overview of Historical Financials
Overview of Historical Financials $ Millions 2019 Cryptocurrency Mining Revenue $90.2 $4.4 $1.2 Cost of Revenue 19.7 7.0 25 Impairment of Mining Equipment = 0.9 : Impairment of Leasehold Improvements : = 05 Compensation and related taxes 153.7 47 15 Consulting Fees 04 0.3 0.1 Professional Fees 3.3 0
Slide 18: Q3 2021 Financials
MARATHON Q3 2021 Financials BTC Production Summary Balance Sheet 1,500 1,252 $M Sey June 30, 2 2 41000 = 021 2021 2020 500 W 157 192 | Cash & cash equivalents $32.9 $170.6 $141.3 2 — — — 32020 042020 12021 22021 32021 Digital currencies 139. 228 23 Deposits 203.3 121.6 65.6 Revenue (in millions) Inv
Slide 19: Investment Thesis
é Investment Thesis Scale: Growing hash rate 393% from 2.7 EH/s in Q3 2021 to 13.3 EH/s by mid 2022 Profitable: Paying $0.042 / kWh for electricity + hosting with projected BTC production costs of $6,235 / BTC? Agile & Capital Efficient: Investing in miners rather than infrastructure; Model provides
Slide 20: Appendix
Slide 21: Reconciliation of non-GAAP Financials
MARATHON Reconciliation of non-GAAP Financials $ Millions Q3 2021 Q2 2021 Q1 2021 o4 3 2020 Operating Income (Loss) ($64.3) $4.6 ($47.1) ($2.0) Depreciation and Amortization of Fixed Assets 43 29 0.7 1.2 0.8 Impairment of Mined Cryptocurrency 67 WA 07 ; Server Maintenance Contract Amortization 1.0 0
Slide 22: Leadership Team
Leadership Team Fred Thiel Jolie Kahn Jim Crawford Peter Benz Chief Executive Officer Legal Counsel Y Chief Operating Officer VP of Corporate Development mar A a Will Beam Adam Swick * gsi eet Chief Financial Officer Controller VP of Strategy Oe Judy Clayton Exec. Admin Assistant Board of Directors
Slide 23: History of Expansion & Growth
MAR ATHON History of Expansion & Growth Purchased additional | Secured 30,000 $100 M lin miners from | of credit Bitmain for | backed by All 133,000 miners deployed; generating 13.3 EH/s with mining operations 70% carbon fe $120.7 M BTC & USD neutral Q3 2021 Mid 2022 Relocated miners to 105 MW Annou
Slide 24: Bitcoin & Traditional Assets ROI
Bitcoin & Traditional Assets ROI as of September 1, 2021 1 year: 2 year: 3 year: 4 year: 5 year: 6 year: 7 year: 8 year: 9 year: 10 year: Bitcoin +310% +402% +579% +892% +8,435% +21,387% +10,130% +33,338% +488,094% +595,259% S&P 500 +28% +56% +56% +83% +108% +136% +126% +176% +222% +276% 23
Slide 25: Glossary of Relevant Terminology
Glossary of Relevant Terminology Average # of BTC Bitcoin (BTC) - a type of digital currency in which a record of transactions is maintained mined each day = and new units of currency are generated by the computational solution of mathematical problems, and which operates independently of a central
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