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Portfolio Bitcoin Mining | Marathon Digital Holdings

February 13, 2024

Marathon's Chairman & CEO Fred Thiel and CFO Salman Khan discuss the company's "portfolio" strategy and how it presents multiple opportunities for Bitcoin mining.

Transcripts are autogenerated. May contain typos.


we announced a 390 megaw purchase of assets primarily based in Texas and Nebraska lots of excitement because now we have unlocked the pipeline of infrastructure that is one readily available two we have the expansion capacity three we reduce our cost per coin for the existing operations that we are already in we're going to continue to grow and develop a model that allows us to be the least bottom quartile cost Miner while having the largest scale in the [Music] industry like in investing you look at a portfolio approach how do you have a


balance the asset light model was really about if we're going to grow and be the biggest we have to maximize the amount of money we spend on Miners and minimize the amount of money we spend on anything else so working with third party hosting Partners we can just go buy machines plug them in and we're up and operating very quickly it allowed us to go to 23x a hash becoming the biggest minor in the industry and then you've got asset heavy with the acquisition that we just recently announced that puts us in the


path of about 45% of our company being owned and operated by us and now your cost per coin is lower because we control our destiny to whether underclock or clock or reduce our costs in in a creative manner this portfolio approach where we have a mix of AET light and assd heavy gives us that upside in all price Cycles you can do Acquisitions all day long uh the question is how much did you pay for it it was very important for me to create that balance in the balance sheet and and how do you do that we reduce 56% of our debt at a 21% discount


that's huge it's a it's more than $100 million savings for the company what that did was it allowed us the opportunity to flex our muscles and execute this transaction the reason it's so attractive is that although it's $458,000 per megawatt for us which is very accretive compared to others who are constructing their sites the the expansion capacity that we bought with this when you combine that together it brings down the cost for us in the $2 to $300,000 per megawatt and that is the most attractive part of this transaction


that we've been able to pay cents to the dollar compared to what our competition is paying for similar ex aash to produce and so as we grow now we are so big now that we are able to then use this Capital we build to start acquiring assets at a time when other people don't have Capital to do that and so we're taking advantage of some of the inefficiencies that exist amongst our competitors to grow faster when it's harder for them they have friction to growth we don't have friction to growth


as we've said before we're a consolidator so if you happen to have a site that has great potential for Bitcoin mining you have access to great power uh and you don't have the capital to build it call us we are very interested in talking to you they're not going to stop here this is just the beginning of the new chapter and there's so many more chapters in Marathon story from [Music] here