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Bitcoin Mining Drops 9% Due to ‘Record High’ Temperatures: Marathon Digital

2 mins
Updated by Kyle Baird
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In Brief

  • Marathon Digital blames Texas' record high temperatures for a 9% decrease in Bitcoin mining in August.
  • Despite the dip, the company still mined over five times more Bitcoins than the same period last year.
  • A class-action lawsuit was recently filed against the firm over alleged false statements regarding its financials.
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Marathon Digital, a Bitcoin mining company, has blamed extreme weather conditions for the decrease in Bitcoin mining productivity in August.

“The decrease in bitcoin production from July was largely due to increased curtailment activity in Texas due to record high temperatures,” the statement noted.

Climate Conditions To Blame For Bitcoin Mining Decrease

Marathon Digital’s CEO, Fred Thiel, states that the company mined 1,072 Bitcoins in August. This surpasses the August figures from the previous year by more than five times. However, it represents a 9% reduction compared to the preceding month of July.

Marathon Digital's US Operational Highlights. Source: GlobeNewsWire
Marathon Digital’s US Operational Highlights. Source: GlobeNewsWire

According to the report, the month-to-month decrease in comparison to July is due to the exceptionally elevated temperatures experienced at Marathon Digital’s Bitcoin mining site in Texas.

The report stated,

“These temporary shutdowns more than offset the progress we have made to increase our operational hash rate and optimize our operations.”

Marathon Digital claims to hold 13,286 Bitcoin, which is currently valued at $341.9 million.

At the time of publication, the current price of Bitcoin is $25,734.

Additionally, Marathon Digital stated that it sold 750 Bitcoin in August, which is the equivalent of approximately $193 million.

The company plans to continue selling Bitcoin in the coming months to facilitate “monthly operations, manage its treasury, and cover general corporate expenses.”

To learn more about crypto mining, read BeInCrypto’s guide: How To Mine Cryptocurrency: A Step-by-Step Guide

However, recent news indicates a broader trend of selling within the Bitcoin mining community. It’s been reported that many miners are selling portions of their holdings in response to Bitcoin price fluctuations.

On September 1, reports indicated that Bitcoin miners initiated a significant sell-off of Bitcoin from their collective reserves.

Glassnode’s data reveals that miners commenced this selling spree on August 26, around the same time that the BTC price fell below $26,000.

The data further illustrates that Bitcoin miners have successfully liquidated approximately 4,000 BTC within the past week.

On May 2, a class-action lawsuit accused Marathon Digital of violating federal security laws. The Klein Law Firm filed a complaint on behalf of Marathon Digital shareholders.

It alleges that the company made false and deceptive statements over nearly two years. 

Marathon Digital reportedly failed to disclose information that would have had a material negative impact on its financial condition.

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Ciaran Lyons
Ciaran is a cryptocurrency journalist based in Sydney, Australia. He particularly enjoys writing about CBDC developments and the practical implementations of cryptocurrency in real-world scenarios. He has also appeared across major television networks in Australia including Channel Ten, Channel Nine and SBS TV. Prior to his foray into cryptocurrency, Ciaran worked as a presenter on national radio station Triple J.