Bitcoin mining company Marathon Digital experienced a significant decline of 21% in the amount of Bitcoin mined in June compared to the previous month. The company attributed this decline to adverse weather conditions in Texas, where its main operations are located. June marks the transition from spring to summer in Texas, and Marathon Digital cited weather-related curtailment as the primary reason for the production decrease.
Despite the decline, Marathon Digital still managed to produce 979 Bitcoins in June, reflecting a notable 599% increase compared to the same period in 2022. This indicates the overall growth trend in their mining activities, despite the temporary setback caused by the weather.
In addition to the impact of the weather, Marathon Digital also noted a significant decrease in transaction fees for June. Transaction fees accounted for approximately 5.1% of the total Bitcoin earned in June, down from 11.8% in May. The emergence of Bitcoin Ordinals in May had contributed to the higher transaction fees, but network congestion eased in June, leading to lower fees. However, Marathon Digital remains optimistic about the future of mining economics.
This is not the first time that adverse weather conditions have affected crypto mining operations in Texas. Earlier reports highlighted how severe winter weather had caused offline deployments of crypto mining rigs. Crypto mining firm Riot Platforms, for example, had 17,040 rigs offline due to the weather conditions.
The impact of weather on mining operations highlights the vulnerability of Bitcoin mining to external factors. In July 2022, weather-related challenges continued to affect crypto miners throughout Texas, with companies curtailing their operations based on alerts from ERCOT, the state’s power grid operator.
On a positive note, a recent report by Coin Metrics revealed that Bitcoin miners earned $184 million from transaction fees in the second quarter of 2023, surpassing the earnings from the entire year of 2022. This demonstrates the ongoing profitability and potential of Bitcoin mining despite temporary setbacks.
Overall, adverse weather conditions in Texas resulted in a 21% decline in Bitcoin mining activities for Marathon Digital in June. While this setback is significant, the company remains optimistic about the future and the growth potential of mining economics. It underscores the importance of addressing external factors that can impact the stability and profitability of crypto mining operations.