- According to the CEO, Fred Thiel, the operation in Abu Dhabi has 2.7 exahashes online.
- In November 2023, the crypto mining firm estimated that 7.5 exahashes would be online by 2023.
- As of December 2023, Marathon Digital Holdings has 15,174 unrestricted BTC.
The crypto industry has significantly evolved over the past few years. The franchise has expanded its reach beyond the basic functionalities of Bitcoin to an entire ecosystem filled with possibilities. For instance, developers have utilized the basic functionalities of PoW from Bitcoin to introduce new consensus mechanisms, such as Proof of History, Proof of Burn, and Proof of Stake.
As a result, many may argue that crypto mining is a legacy practice within the market. In truth, the need for crypto-mining organizations has significantly reduced. With the introduction of Proof of Stake, many organizations have shifted their focus to a more eco-friendly approach. Despite this, crypto mining is an essential component of the industry.
It is a must-have requirement to generate new tokens, and its importance may be reduced, but we cannot completely transition from it. In recent developments, Marathon Digital Holdings, a renowned Bitcoin mining entity, has highlighted significant strides in UAE’s crypto ecosystem. According to the official report, Abu Dhabi facilities have outpaced its peers, showcasing 7.1 exahashes online.
Marathon Digital Holdings praises Abu Dhabi’s promising exahashes online rate.
UAE’s crypto ecosystem is one of the top crypto-friendly regions in the world. According to the 2023 Crypto Oasis ecosystem report, more than 1800 organizations are employing over 8000 people across the digital assets industry in the MENA region. UAE has undergone several strategic shifts towards diversification, with its government encouraging its citizens to embrace blockchain technology.
To accomplish this feat, its government has taken several proactive measures to create regulatory bodies using many crypto-based organizations to set up shops within the region. Marathon Digital Holdings is among the many organizations drawn to the crypto-friendly costs UAE has to offer.
For those unaware, Marathon Digital Holdings is among the few organizations still flourishing in the crypto mining franchise. It has several stations worldwide, but in a recent announcement, the Bitcoin mining firm praised the rapid growth of its UAE branch.
According to the CEO, Fred Thiel, the operation in Abu Dhabi has 2.7 exahashes online, including housing over 13,000 rigs energized at the second largest facility in Masdar City.
Generally, an exhaust is a common term used to refer to mining bitcoins. It means quantifying the rate at which a collection of mining rigs makes one quintillion computations in total. A single crypto mining rig often quantifies its rate in terahashes.
According to Fred, Abu Dhabi’s high crypto mining rate has shattered previous records. He also stated that the remaining 4.4 exahashes are expected to be online within the month.
As one of the largest and remaining Bitcoin mining firms, Marathon Digital Holdings has dedicated its efforts to dominating the franchise. In November 2023, the crypto mining firm estimated that 7.5 exahashes would be online by 2023. Marathon Holdings increased its energized hash rate by 4% to 24.7 exhales to achieve this feat, cementing its lead as the largest publicly traded Bitcoin Miner.
As per their official statement, “We continue to target 30% growth in energized hash rate in 2024, and with the recently announced acquisition of the two sites from Generate Capital, which is expected to close in January 2024, we expect to reach 50 exahashes in the next 18 to 24 months.”
UAE’s crypto ecosystem has provided ample environment for cryptocurrency to thrive. Abu Dhabi achieving such a feat is no mere coincidence as, for years, the region has prepared itself to become a prominent contender for the new digital age.
The efforts of this branch and others significantly propelled Marathon’s Bitcoin production rate. In December, the Bitcoin mining firm mined 1,853 BTC, a 56% improvement from November and a 290% increase since 2022.
Thiel explained, “Significantly higher transaction fees helped December’s Bitcoin production grow much faster than the average operational hash rate. For the month, MaraPool collected more than 380 BTC in transaction fees or 22% of BTC production, up from 12% last month. Our success in capturing the sizable transaction fees currently available to miners is directly related to owning and operating our pool. It represents a key competitive advantage of our vertically integrated tech stack.“
Marathon Digital Holdings Dominates the franchise.
Since February 23, 2010, Marathon Digital Holdings has remained true to its founding in crypto mining. As the entire globe and web3 community saw the merits of crypto mining, the Bitcoin mining form saw the core significance of the art. Despite having adverse effects, crypto mining is the core mechanism behind creating new tokens, and their importance holds to date.
As of December 2023, Marathon Digital Holdings has 15,174 unrestricted BTC. The organization sold 704 BTC to cover monthly operating expenses but intends to sell a potion to support other sectors, such as its treasury and general corporate purposes. With the combined balance of unrestricted cash and cash equivalents, Bitcoin’s rapid value increased its total valuation from $802.3 million to $998.5 million.
With the anticipated Bitcoin Halving and the Spot EFT proposal, Marathon Digital Holdings is gearing up to take advantage of the price influx. As a result, it is currently strategically building liquidity on the balance sheet to capitalize on the opportunity and the industry consolidation.