Marathon Digital Holdings Announces Production of Bitcoin and

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– Produced a record 1,245 BTC in May 2023 and 4,141 BTC YTD

– Increased operational hash rate by 9% to 15.2 PE/s and installed hash rate by 13% to 20.1 PE/s in May 2023

– Raised nearly $800,000 for Bitcoin Core Developers in collaboration with Brink

– Reported unrestricted cash and cash equivalents of $97.3 million and increase in unrestricted bitcoin holdings to 12,259 BTC (approx. $333.7 million) as of May 31, 2023

FORT LAUDERDALE, Fla., June 02, 2023 (GLOBE NEWSWIRE) — Marathon Digital Holdings, Inc. (NASDAQ: MARA) (“Marathon” or “Company”), a leader in supporting and securing the Bitcoin ecosystem, released today unaudited Bitcoin (BTC) miner production and installation updates for May 2023.

Management CommentaryWe produced a record 1,245 bitcoins in May, up 77% from last month and 366% from May 2022, said Fred Thiel, president and CEO of Marathons. The increase in production was due to an increase in the hash rate and a significant increase in transaction fees, which accounted for around 11.8% of the total bitcoins we earned last month. The emergence of ordinals dramatically increased transaction fees in May, which in some cases were so high that they exceeded the block reward of 6.25 BTC. With our scale and improved availability during the month, we were able to capitalize on this opportunity. Although these abnormally high transaction fees are historically rare, we believe that these events can serve as a positive sign for the future of the mining economy.

In May, we increased our operational hash rate by 9% month-over-month to 15.2 exahashes, and we increased our installed hash rate by 13% month-over-month to 20 ,1 exahashes. With the construction of the Applied Digitals Ellendale, ND facility progressing and our fleet optimizations continuing, we believe we are on track to achieve our 23 PE/s target by the middle of this year. .

Also in May, we announced that we would be partnering with Brink to raise up to $1 million to support Bitcoin Core developers. In less than four days, we have collectively raised nearly $800,000 for Bitcoin Core developers, of which $500,000 is Marathons’ contribution. We are extremely grateful to the Bitcoin community for coming together on this initiative to support the volunteers who maintain the open source protocol we all depend on. We encourage every bitcoiner and bitcoin-related business to support bitcoin core developers and join us in bridging the gap to raise $1 million for bitcoin core developers.

Highlights and Operational Updates

Figure 1: Operational Highlights

Year-on-Year ComparisonPrevious Month ComparisonMetric5/31/20235/31/2022%5/31/20234/30/2023%BTC Produced1.245267366%1.24570277%Avg. BTC produced per day40.28.6366%40.223.472%Operational/Energized hash rate (EH/s)115.23.9291%15.214.09%Installed hash rate (EH/s)220.13.9416%20.117.913%1. Defined as the amount of hash rate that could theoretically be generated if all mining servers that have been activated are currently running (including mining servers that are temporarily offline for maintenance or similar). Hash rates are estimates based on manufacturers’ specifications. All figures are rounded.2. Defined as the sum of the hash rate enabled (see above) and the hash rate that has been installed but is not yet enabled (e.g. mining servers are in containers but not enabled). Hash rates are estimates based on manufacturers’ specifications. All figures are rounded.

In May, approximately 5,500 Bitcoin Marathon miners (approximately 0.75 EH/s) were newly powered at Applied Digitals facilities in North Dakota. Approximately 5,300 S19 XPs (approx. 0.72 EH/s) were newly powered in Ellendale, ND. The remaining units were powered up at the Jamestown, ND facility, where Marathon’s first national immersion mining deployment is well underway.

As a result, the company’s mining fleet has grown to around 133,600 Bitcoin miners, theoretically capable of producing around 15.2 PE/s, according to manufacturers’ specifications, as of June 1, 2023.

Once all of the miners previously purchased by Marathon are installed, around 66% of the company’s hash rate is expected to be generated by XP S19s, which are around 30% more power efficient than the previous generation of mining rigs.

Financial Highlights and Updates

Figure 2: Financial Highlights

Year over year comparisonPrevious month comparisonMetric5/31/20235/31/2022% 5/31/20234/30/2023%Total cash, cash equivalents and restricted cash ($, in millions )97.360.760%97.3123.5-21% unrestricted cash97.357.569%97.3123.5-21% restricted cash0.03.2-100%0.00.0NTotal BTC holdings (in whole numbers)12 2599 94123 %12 25911 5686% Unrestricted BTC Holdings12 2595 862109 % 12.25911.5686%BTC Restricted Holdings04.079-100%00NA

As of June 1, Marathon holds a total of 12,259 BTC, all unrestricted. The company elected to sell 554 BTC during the month of May and intends to sell a portion of its bitcoin holdings in future periods to support monthly operations, manage its cash flow and for general corporate purposes. . The company ended the month with $97.3 million in unrestricted cash and cash equivalents on its balance sheet.

Donation for Bitcoin Core developers in collaboration with BrinkOn May 18, 2023, Marathon and Brink launched a joint initiative to raise up to $1 million to support Bitcoin Core developers. Marathon has pledged to match donations up to a total of $500,000 through 2023, for a total potential donation amount of $1 million (when combined with third-party donations). The company has pledged to match all donations (up to a maximum donation of $500,000 from Marathon) at the 2023 Bitcoin Conference on a two-to-one basis.

On May 22, 2023, four days after the campaigns launched, Marathon successfully fulfilled its matching commitment. While this achievement marks a milestone in the campaign, the $1 million goal has yet to be reached. Marathon and Brink are now encouraging the rest of the Bitcoin community to contribute to this important cause to ensure that Bitcoin Core developers can continue their essential work of maintaining and strengthening the Bitcoin network.

Those interested in contributing to the development and security of the Bitcoin network can visit this link to donate or to learn more about Brink and the Marathon match. Brink is a 501(c)(3), and all donations made to the organization are tax deductible.

Notice to InvestorsInvesting in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described under “Risk Factors” in Item 1A of our most recent Annual Report on Form 10-K for the fiscal year ended 31 December 2022, filed with the SEC on March 16, 2022. If any of these risks materialized, our business, financial condition or results of operations would likely be adversely affected. In this case, the value of our securities could fall and you could lose part or all of your investment. The risks and uncertainties we describe are not the only ones we face. Additional risks not currently known to us or that we currently deem to be immaterial may also adversely affect our business operations. Additionally, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to predict future results. Future changes in the network-wide mining difficulty rate or Bitcoinhash rate may also significantly affect the future performance of Marathon’s Bitcoin production. In addition, all financial metrics discussions assume mining difficulty ratings as of June 2023. See “Forward-Looking Statements” below.

Forward-looking statementsStatements made in this press release include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by the use of words such as may, will, plan, should, expect, anticipate, estimate, continue, or comparable terminology. Such forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which cannot be accurately predicted by the Company and some of which may not even be anticipated and involve factors that could cause actual results to differ materially from those projected or suggested. Readers are cautioned not to place undue reliance on these forward-looking statements and are encouraged to consider the factors listed above as well as the additional factors under the heading Risk Factors in the Company’s Annual Reports on Form 10-K. , as they may be supplemented or amended. by the company’s quarterly reports on Form 10-Q. The Company assumes no obligation to update or supplement any forward-looking statements that become untrue as a result of subsequent events, new information or otherwise.

About Marathon Digital HoldingsMarathon is a digital asset technology company focused on supporting and securing the Bitcoin ecosystem. The company is currently becoming one of the largest and most enduring bitcoin mining operations in North America.

Marathon Digital HoldingsCompanyContact:Phone: 800-804-1690Email:[email protected]

Marathon Digital Holdings Media Contact: Email: [email protected]

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