• Marathon Digital Holdings mined a record-high number of Bitcoin (BTC) in May, increasing its production by 77% compared to April 2023.
• The significant uptick in Bitcoin transaction fees, thanks to Ordinals, accounted for 11.8% of the BTC Marathon Digital mined in May.
• Marathon’s chairman and CEO Fred Thiel explained that the spike in BTC production was a direct result of the increase in the firm’s hash rate and BTC transaction fees.
Marathon Digital Increases its Production by 77%
Marathon Digital Holdings recently achieved a record-high number of Bitcoin (BTC) mined – an increase of 77% compared to April 2023. The total amount produced was 1,245 BTC in May, which is 366% higher than it was in May 2022.
Uptick in Transaction Fees
The significant uptick in Bitcoin transaction fees was due to Ordinals Inscriptions – similar to non-fungible tokens (NFTs) on other blockchains. These abnormally high transaction fees are historically rare and accounted for approximately 11.8% of the total Bitcoin produced by Marathon Digital last month.
Increased Hash Rate
According to Marathon’s chairman and CEO Fred Thiel, the spike in BTC production was a direct result of an increased hash rate from their mining activities as well as higher transaction fees associated with Ordinals Inscriptions. As such, these events can serve as a positive sign for the future of mining economics going forward.
Positive Sign for Mining Economics
The emergence of Bitcoin Ordinals Inscriptions caused a significant uptick in Bitcoin transaction fees last month that were far higher than usual – even exceeding 6.25 BTC block reward at times, making mining very profitable for many companies during this period like Marathon Digital Holdings. This shows there may be opportunities for miners when these abnormally high transaction fees occur again on the blockchain network going forward according to Fred Thiel – creating potential positive signs for mining economics moving ahead into the future.
Overall we can see that despite some challenges faced within cryptocurrency mining industry due to high difficulty levels and low rewards due to lessening block rewards over time – some new opportunities have been appearing recently due to rising demand from certain parties such as those using Ordinal Inscriptions or NFTs on other blockchains who are willing pay more than normal per transactions leading to bigger profits for miners like Marathon Digital Holdings when they are able capitalize on them correctly through effective scaling and uptime strategies during these periods