Crypto minor Marathon digital mining a Record 615 Bitcoins in October Marathon Further elevated its hash price by 84 in October in setting its new month-to-month High And becoming a member of us to debate simply that's Fred Thiel he's a CEO of marathon Digital Holdings Fred nice to have you ever On the present so Marathon digital thoughts In October many Bitcoin and at nearly 615 nearly matches the 616 at thoughts for The total third quarter how is it even Possible Well you understand we had a giant shortfall From the transition out of our Hardin Facility in Montana uh which we absolutely Exited through the quarter after which we Brought our wolf our sorry King Mountain Facility absolutely on-line with 69 000 miners Uh throughout the identical interval so there was This good transition and uh you understand as Of November 1 we're performing uh round 7x a hash and we're persevering with to deploy Miners you understand as we've stated in our Previous Um releases we nonetheless count on to be at 23x Ash mid-2023 uh and we proceed to Deploy miners Both in Texas after which later this 12 months Starting in North Dakota along with Our associate utilized blockchain and uh Very excited concerning the progress we're Making clearly uh I feel we're most Excited about so the miners we're Deploying now are all match foremost s19 XPS
Which are probably the most power environment friendly Miners on the market that are 30 p.c More power environment friendly than the s19j professionals That most individuals have deployed so in Times of excessive power costs and low Bitcoin it offers us a really core Strategic Advantage uh relative to our Cost of my Bitcoin so how are situations For minors now with Rising power prices And depressed Bitcoin costs and the way are You capable of Buck the development Well yeah I feel a part of it's our Model this asset gentle mannequin we've been Talking about now for slightly over a Year and a half the place basically we Don't spend money on the capex and the heavy Capex prices of the infrastructure however Rather we associate with operators uh who Build out the websites they bear the burden Of the capex and we offer Miners and Mine and as a result of our scale we're capable of Negotiate very engaging costs for Ourselves however what that does is it means That all our capex actually is simply Focused on shopping for and deploying Miners And so in contrast to a number of the different miners Out there who're both vertically Integrated growing their very own websites They have very massive upfront capex Expenses relative to web site growth That we don't have on the similar time We're a really lean operator with amongst Some of the bottom uh you understand value to Mine Bitcoin within the business and that's
Really simply based mostly on our mannequin so we're Very targeted on being agile uh and Evaluating alternatives within the Marketplace uh as they come up we have been Very profitable in 2020 and 2021 and Raising enough Capital to be nicely Positioned uh for this Marketplace we Have little or no debt little or no Current debt on our steadiness sheet in any respect And uh we predict we're very nicely Positioned to climate the steadiness of This winter and be extraordinarily nicely Positioned as issues come again Um in the end as a result of we'll have this Very massive Fleet of Highly power Efficient miners and we predict we'll be Able to be undoubtedly you understand one in all The main and most dominant gamers in The business and but Marathon digital is Exposed by 81 million {dollars} to compute North which was a internet hosting associate of Yours going by way of chapter proper now So what occurs to these funds now So it is advisable have a look at sort of what the Makeup of that 81 million is so Um a big portion of it 50 million are Actually deposits which can be prepayments For power and um different issues Predominantly tied to the King Mountain Site which was not it which isn't half Of the chapter in order that web site is absolutely Out of chapter Um and um although that asset is being Sold the compute North portion of it's
Being offered Um as a part of the chapter course of Um however that web site was not a part of the Bankruptcy so 50 million of the 81 Million have been deposits associated to power Payments and internet hosting And then there was 10 million {dollars} of Preferred fairness and roughly uh 21 Million {dollars} of uh a mortgage that was Made to compute North so if you happen to suppose About the sort of uh publicity or Immediate publicity proper now clearly The fairness funding that we made uh Last 12 months Um will seemingly be washed out uh after which Uh you understand the mortgage we nonetheless need to See however the deposits we really feel are nonetheless Good are you hopeful that you just'll get Those funds again by way of the chapter Process Well yeah the deposits basically you Eat down as you devour energy proper so They're that's sort of the best way that Model Works uh so Um we proceed to you understand work with Compute North and uh the opposite proprietor of The King Mountain web site because it goes Through this course of and you understand to this point We suppose issues are stepping into the appropriate Direction are you shocked by the Compensation and bonuses handed out to Executives proper earlier than declaring Bankruptcy do you suppose that's Appropriate given they owe collectors
Like you cash I'm not going to touch upon that All proper Um You additionally talked about you will have some new Facilities beneath development What's the Progress on that So issues are going nicely uh utilized Blockchain is uh constructing a brand new web site in North Dakota which is behind the meter At a wind farm just like our different Facilities Um you understand that we're now working all Focused on being behind the meter Renewable power websites and uh the Applied blockchain web site they've laid Foundations at this level for the Buildings and so the constructing course of Will begin on these areas and so the South the North Dakota websites will come Online uh early subsequent 12 months and there's a Texas facility which we're presently in The strategy of deploying miners to which Will begin coming on-line Um Before the tip of this 12 months Fred is There any additional concern that there might Be extra chapter within the mining Industry given the bear Market the excessive Energy prices or do you suppose that has Bottomed out So I I feel Um there may be seemingly extra to return Um you understand clearly you understand core Scientific was a giant one and that story
Is not achieved but I consider that you understand Mike Levitt's a very good operator he is aware of What he's doing relative to monetary Markets you understand so to take care of lenders And restructured debt so I'm positive They'll discover a technique to um Do the most effective he can on this course of uh You know Argo it's one other story they Need Capital to finish their uh their Site and get their PPA that's an even bigger Problem I feel Um after which as you look down sort of the List there are uh you understand a variety of Other operators who both don't have The capital to completely deploy uh the websites That they constructed or don't have the Capital to complete the websites they've Built and so that you're going to see folks Who are ready the place they're Either going to promote the miners they Have on order or probably promote miners To increase money to have the ability to end Building out their websites however The winter time is the worst time to be Trying to promote Assets on this area so I I feel we'll seemingly see a variety of Other firms uh have points right here Um And uh you understand we'll simply have to write down It out however on the finish of the day comparable To in Prior Winters on this business you Know the gamers with the strongest Balance sheets Will Survive come out the Other finish and Thrive
Provide additional strain promoting Pressure on bitcoin going ahead No you understand I I feel if you concentrate on Minor Supply which is sort of what You're alluding to Um you understand quite a lot of minors have offered Other Bitcoin I feel we're one of many Only miners aside from possibly HUD eight Who hasn't offered Bitcoin uh at this level So now we have over 11 000 BTC on our Balance sheet now Um making us most likely third or Fourth largest holder of Bitcoin to Publicly traded firms within the U.S Um we don't have a present have to promote Bitcoin in order we've beforehand stated you Know we'll proceed to huddle till we Feel that it is sensible for us to promote Some Bitcoin to cowl our working Expenses however uh we're very bullish on Bitcoin we proceed to be bullish on Bitcoin and we predict that we're getting To the tip of the macro occasions which have Been actually placing strain on bitcoin Um it's not a provide difficulty that's Putting strain on bitcoin it's a Demand lack of demand and I feel that Demand will start choosing up once more as soon as Uh we're by way of sort of a few of these Macro occasions that uh now we have dealing with us Over the subsequent six months