Marathon Digital Holdings Announces Production of Bitcoin and

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– Produced 979 BTC in June 2023 and 5,120 BTC YTD

– Increased operational hash rate by 16% to 17.7 PE/s and installed hash rate by 8% to 21.8 PE/s in June 2023

– JV in Abu Dhabi has started mining operations, on track for 7 p.e. by the end of the year

– Reported unrestricted cash and cash equivalents of $114 million and increase in unrestricted bitcoin holdings to 12,538 BTC (approximately $382 million) as of June 30, 2023

FORT LAUDERDALE, Fla., July 05 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 day for June 2023.

Management CommentaryWe produced 979 bitcoins in June, down 21% from last month and up 599% from June 2022, said Fred Thiel Marathons President and CEO. The drop in production compared to last month was due to weather-related restrictions in Texas and a significant decrease in transaction fees, which fell to around 5.1% of the total bitcoins we earned in June. , compared to 11.8% in May. The emergence of ordinals significantly increased transaction fees in May, and while network congestion eased in June, we view recent trends as a positive sign for the future of the mining economy.

In June, we increased our operational hash rate by 16% month-over-month to 17.7 exahashes, and we increased our installed hash rate by 8% month-over-month to 21 .8 exahashes. The final stops to reach our 23 PE/s goal are in Ellendale, ND and Garden City, TX. The final building in Ellendale is expected to go live this month, with the final Garden City link also expected during the same period.

Additionally, we are also delighted to announce that our new joint venture in Abu Dhabi began hashing earlier this week as the first containers at our Mina Zayed facility were powered up. The speed of execution, from ideation to production, is a testament to the significant technological expertise of Marathon and our growing team of mining professionals. Our UAE partners at Zero Two quickly delivered our combined vision, and we continue to expect the full 7.0 exahashes to be live before the end of 2023. Note that despite this progress, the reported operational hash rate of 21.8 exahashes and 23 exahashes remain unchanged. exclusive to the JV.

Highlights and Operational Updates

Figure 1: Operational Highlights

Year-on-Year ComparisonPrevious Month ComparisonMetric6/30/20236/30/2022% 6/30/20235/31/2023% BTC Produced979140599%9791.245-21%Avg. BTC Produced Per Day32.64.7599%32.640.2-19%Operational/Energized Hash Rate (EH/s)117.70.72429%17.715.216%Installed Hash Rate (EH/s)221.83.6506%21.820.18%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 June, approximately 18,500 Bitcoin Marathon miners (approximately 2.5 PE/s) were powered up at the Applied Digitals facility in Ellendale, ND. This growth was partially offset by the removal of 3,000 older generation miners from the service when a hosting agreement in Ohio expired.

As a result, the company’s mining fleet has grown to around 149,900 Bitcoin miners, theoretically capable of producing around 17.7 PE/s, according to manufacturers’ specifications, as of July 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’s comparisonMetric6/30/20236/30/2022% 6/30/20235/31/2023% Total cash, cash equivalents and restricted cash ($, in millions )113.789.227%113.797.317% Cash without restriction113.786.032% 113.797.317% Cash 03.03.2-100% 0.00.0 natotal BTC Holdings (in whole number) 12 53810 05525% 12 53812.2592% BTTC without restriction12 5387 .23473% 12.53812, 2592% Restricted BTC Holdings02.820-100%00NA

As of July 1, Marathon holds a total of 12,538 BTC, all unrestricted. The company elected to sell 700 BTC during the month of June 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 $113.7 million in unrestricted cash and cash equivalents on its balance sheet.

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, 2023. 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 could 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 modified. 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.

For more information, visit www.mara.com, or follow us on:

Twitter: @MarathonDHLinkedIn: www.linkedin.com/company/marathon-digital-holdingsFacebook: www.facebook.com/MarathonDigitalHoldings Instagram: @marathondigitalholdings

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

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

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