Bitcoin miners HIVE Digital Technologies and MARA Holdings have reported increased Bitcoin production in the September quarter, however this was offset by lower mining revenues due to lower Bitcoin prices.
HIVE produced 1,070 Bitcoin in the quarter, up 49% year-on-year. However, this resulted in a 7.4% decline in mining revenues to $76 million. MARA Holdings also reported increased production of 5% to 2,247 BTC. However, lower cryptocurrency prices resulted in a 34% fall in mining revenues to $159 million.
Source: sec.gov
MARA Offloads Bitcoin To Clear Loans
MARA also reported a large change in its Bitcoin holdings. It sold 13,597 BTC, generating around $1.1 billion. It used $750 million of this to pay back its Bitcoin backed term loans in full. This released 17,477 BTC of Bitcoin that had previously been used as collateral.
Increased Costs & Equipment Write-offs
Both companies also reported increased costs. HIVE reported a 20% increase in energy costs to $45.6 million. MARA reported a 12% increase in purchased energy costs to $48.1 million as it increased its owned mining operations.
Both companies reported increased charges related to equipment. HIVE reported a non-cash charge of $31.2 million for mining equipment write-downs due to poor mining economics. MARA reported a $12 million write-off for mining rigs and equipment.
This reflects the difficulties faced by Bitcoin miners. Both companies are also increasing their AI infrastructure businesses. This makes it increasingly important to control their capital and energy costs.
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